Explain to michael the rationale for excluding certain

Reference no: EM131047819

Michael owns a small plane that he flies on weekends. His insurance agent informs him that aircraft are excluded as personal property under his homeowners policy. As an insured, he feels that his plane should be covered just like any other personal property he owns.
a. Explain to Michael the rationale for excluding certain types of property, such as aircraft, under the homeowners policy.
b. Explain some additional reasons why exclusions are present in insurance contracts.

Reference no: EM131047819

Questions Cloud

Implements strategies for promoting a learning cultures : Learning is at the heart of a company's ability to adapt to a rapidly changing environment. A learning organisation is one that: Embraces the need for continual learning by all its members and Identifies and implements strategies for promoting a lear..

Require an effective annual interest rate : You are considering a 20-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.32%, how much should you be willing to pay for the bond?

Make a contract for visual merchandising work : Make a contract for visual merchandising work. List on a scrap piece of paper, all of the things that you can think of; that you want to include in your contract and give each section a title.

Justify it with sound scientific arguments : Design, the type of transmission wire you would be using. Justify your design parameters. If you need more money than what is budgeted to you for your design justify it with sound scientific arguments

Explain to michael the rationale for excluding certain : Michael owns a small plane that he flies on weekends. His insurance agent informs him that aircraft are excluded as personal property under his homeowners policy. As an insured, he feels that his plane should be covered just like any other persona..

Dividends are expected to grow-price of the stock today : A7X Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 18 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13 percent, what is the price of the..

Should the project be accepted if required rate of return : Luke Coal Mining, Inc. is considering opening a strip mine, the cost of which is $4.4 million. Cash flows will be $27.7 million, all coming at the end of one year. The land must be returned to its natural state at a cost of $25 million, payable after..

Find the velocity of the output shaft : Find the velocity of the output shaft

Cash-surrender value when a cash-value policy : All states have nonforfeiture laws that require the payment of a cash-surrender value when a cash-value policy is surrendered. Briefly explain the following nonforfeiture options that are found in a typical life insurance policy.a. Cash-value opti..

User Account

All Pages