Insurance and Risk Management
Jim borrowed $700,3000 from Suburban Bank to buy a boat for his Alaskan king crab fishing business. He keeps the boat at a dock owned by the Barnacle Company. Jim also has a contract with the Landshark Fishing Company to transport his crabs from one port to another. Include the following in your paper:
- Do any of the following parties have an insurable interest in Jim or his property? If an interest exists, explain the extent of the interest.
- Suburban Bank
- Barnacle Company
- Landshark Fishing Company
- If Jim did not own the boat but operated it on behalf of the Landshark Fishing, would he have an insurable interest in the boat? Explain your answer.
Part 2
The Balut Corporation has 4,000 sales representatives and employees in the United States who drive company trucks. The company’s risk manager has recommended to the firm’s management team that the company should implement a partial retention program for collision losses to company trucks. Include the following in your paper:
- Explain the advantages and disadvantages of a partial retention program to the Balut Corporation.
- Identify the factors that Balut Corporation should consider before it adopts a partial retention program for collision losses for company trucks.
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In insurance, the term insurable interest is used to refer to the benefits, financial or otherwise, that an insured good or service brings to the insurer of the commodity. It means that if the commodity is lost or destroyed, the insurer of the commodity will suffer financial loss or any other type of loss. In life assurance for example, it is believed that one’s couple has insurable interest in his or her partner or family members even if the partner or family member do not benefit them financially. In product insurance, the principle of insurable interest must be demonstrated at the time of taking the insurance contract and also at…………..
APA
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