PRINCIPLES OF INSURANCE BFIN 322
In around 3 or 4 pages, with correct spelling/grammar:
(*NOTE: Parts 1, 2, and some of 3 and 4 are suited for presentation in a table or Excel format)
- List the coverages (i.e., liability, medical expense, un/under-insured motorist, collision and/or other than collision damage to your auto, any applicable no-fault/personal injury protection, and any other endorsements) that apply in the automobile policy you chose to analyze. Be sure you include: (a) the amount (“limits”), (b) the premium (cost), and (c) the deductible for each coverage or endorsement for each auto where applicable. Be sure to include the total premium for each auto, and how/when this premium is payable (e.g., annual, semiannual, quarterly, or monthly), and any applicable finance charges incurred for non-annual payment.
- Be sure to provide: (a) a description of each insured vehicle, (b) the location (i.e., rural, suburban, or urban) and the principle place of garaging applicable to each vehicle, and (c) the primary usage of each vehicle (e.g., for pleasure, to commute to work or school ≤ 5 miles each way, etc.).
- List any discounts that may be currently in effect in the policy. Are there any other additional discounts for which you (or your subject) may be eligible? Why have these discounts not been taken advantage of sooner?
- List the individuals who are “covered persons” under the policy, and discuss their relevant driving record(s). Discuss the personal and physical factors that are/were important in determining the policy’s premiums.
- What is the current financial rating of your (your subject’s) auto insurance company? Be sure to identify your rating sources(s) (i.e., A.M. Best, Dun & Bradstreet, Standard & Poors, Weiss, etc.). The insurer’s web site or your insurance agent might be a source of this information. More relevant information on insurer financial ratings can be found in the link below:
How to assess the financial strength of an insurance company | III
- How did the automobile insurance company deal with the Covid-19 situation? Did they give insureds extra time to pay premiums? In much of March and April things had really shut down, resulting in few miles driven and fewer claims. Did the insurance company provide any type of premium rebate for this lowered risk?
- ** Discuss ** whether or not you feel that the current policy provides the coverages, amounts, and endorsements appropriate to you (your subject’s) present auto insurance needs. ** Describe ** any changes in deductibles and/or coverages you feel may be appropriate. *Be sure to support your conclusions*.
Did you (or your subject) “shop around” for the best coverage package? If not, why not? Also, what about related non-PAP coverages? Is there anything you learned during your Auto Policy Analysis that surprised you about the policy?
- NOTE: Normally you would be required at attach a photocopy of the “declarations” page(s) of the auto policy you used. However, since this is an online course, you can take a pic or scan the declarations page and attach, or copy the information on a Word or Excel document. Feel free to redact or block out any personal information, such as vehicle ID number or the policy number. However, rest assured the policy is used for this assignment ONLY.