Find fair price for the insurance policy, Operation Management

A1 Inc. has $1 million in assets at a job site and, applying a risk transfer approach, wishes to address risk by taking out an insurance policy. The insurance carrier provided its statistical data in the table below. Based on that data and assuming an agreed upon $450 fee for handling and profit for the carrier, what should A1 consider a fair price for the insurance policy?

Equipment Value
$ 1,000,000
Type Damage
Probability (%)
Extent of Loss (%)
Total
0.02%
100%
Medium
0.08%
40%
Low
0.10%
20%
No Damage
99.80%
0%

Posted Date: 2/12/2014 4:50:03 AM | Location : United States







Related Discussions:- Find fair price for the insurance policy, Assignment Help, Ask Question on Find fair price for the insurance policy, Get Answer, Expert's Help, Find fair price for the insurance policy Discussions

Write discussion on Find fair price for the insurance policy
Your posts are moderated
Related Questions
Assess the challenges of managers providing accurate, timely, and effective feedback to employees. Recommend how managers can overcome any two of the challenges you identified.

How can product development costs be minimized by entering the market late

What is a principle within a health care organization?

What is a "common-size financial statement" and how would it assist you to manage your business successfully?

Essentially relativism reject the notion that there is are no absolutes that govern our behaviour. How then do we determine how we behave? How reasonable and plausible is this posi


What type of transmission path does a fixed wireless signal require? a. line-of-sight b. non-line-of-sight c. omni-directional d. code divided

1.Why does each generic business model require a difficult set of business-level strategies? Give examples of pairs of companies in: (a) the computer industry; (b) the electronics

Describe the difference between trait-oriented and results-oriented performance appraisal instruments, identifying some of the instruments used in each case.

In what ways if anywhere biases stereotypes or overt discrimination involved in this situation?