Insurance

In: Business and Management

Submitted By hminn96
Words 316
Pages 2
CASE 1
Answer
1- Direct losses the bank experienced
The bank’s IT such as information about client record and business data, the bank‘s furniture, computers, and other equipment.
The bank can sue the building owner for leasing unsafe premises because the owner declared too expensive to repair the building and building is very tall tower.
2- Indirect cost: the bank could not use the building, the bank inability to hold needed conferences and meetings there is a business loss and income loss, key employee loss, loss of costumer, the bank has expenses to recover office and business. The shuttle service cost for the bank.

3- In a maximum probable loss event arising from a tornado, identify the additional losses that you would expect.
After the tornado damaged, the bank’s employees and officers had no access to it over the week. There might have been life loss in this case but there are no life losses.
The building has glass windows. There is a huge possible for loss of business and daily life. Dallas, Texas located in the south and mostly time south states have Tornados and hurricane therefore people should be trained. In addition, they should be trained to stay away from glass windows.
There might have been employee lost. Employee benefits and other cost related with employees and the bank.
I believe training can reduce the cost. Such training for an earthquake San Francisco, earthquake training is given in the high school and elementary schools. Disability or temporary damaged would be happened in the building.

CASE 2 Yes. A restaurant on the premises can substantially increase the probability of a fire or other loss. Premiums must be substantially higher if the restaurant was also covered. Since the physical hazard would be substantially increased and this fact was not disclosed, the insurer could attempt to deny coverage on the basis of a material…...

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