Thomas, an insurance agent, has the opportunity to quote coverage on a home valued at two...
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Thomas, an insurance agent, has the opportunity to quote coverage on a home valued at two million dollars. If he obtains the business at a reasonable rate, the client will insure his commercial business, with an annual net revenue of three hundred million dollars, with Thomas. Thomas knows that if he can insure both the home and commercial risk with his top insurer, he will become eligible for a substantial bonus. However, the insurer surcharges premium for any risk with wood as a primary heating source. The client's home is heated with a combination wood/electric furnace. What decisions would most likely be considered a situation-based decision for Thomas? Thomas, an insurance agent, has the opportunity to quote coverage on a home valued at two million dollars. If he obtains the business at a reasonable rate, the client will insure his commercial business, with an annual net revenue of three hundred million dollars, with Thomas. Thomas knows that if he can insure both the home and commercial risk with his top insurer, he will become eligible for a substantial bonus. However, the insurer surcharges premium for any risk with wood as a primary heating source. The client's home is heated with a combination wood/electric furnace. What decisions would most likely be considered a situation-based decision for Thomas?
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In this scenario Thomas as an insurance agent faces a situationbased decision regarding whether to proceed with quoting coverage for the home valued a... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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