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Problem:
There are numerous definitions of insurance. Based on the definition of insurance stated in the text, indicate whether each of the following guarantees is considered insurance.
a. A new television is guaranteed by the manufacturer against defects for 90 days.b. A new set of radial tires is guaranteed by the manufacturer against road defects for 50,000 miles.c. A builder of new homes gives a 10-ycar guarantee against structural defects in the home.d. A cosigner of a note agrees to pay the loan balance if the original debtor defaults on the payments.e. A large group of homeowners agrees to pay for losses to homes that are damaged or destroyed by fire during the year.
Additional Information:
This question is from Finance. These questions are about insurance as well as give certain condition where insurance can or cannot be applied.
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