Solution Manual for Risk Management and Insurance 12th Edition Trieschmann – Complete Instructor’s Manual with Test Bank & Answers

iii




SOLUTION MANUAL FORG G



RISK MANAGEMENT AND INSURANCE 12TH EDITION JAMES TRIESCHMANN SANDRA GUST
G G G G G G G G G


AVSON SANDRA GUSTAVSON, ROBERT HOYT SANDRA GUSTAVSON, ROBERT HOYT, DAVID
G G G G G G G G G


SOMMER
G




CONTENTS
INSTRUCTOR’S MANUAL g

PARTg1: RISKgANDgTHEgRISKgMANAGEMENTgPROCESS

Chapterg1: IntroductiongtogRisk.................................................................................................1
Chapterg2: RiskgIdentificationgandgEvaluation ..........................................................................4
Chapterg3: PropertygandgLiabilitygLossgExposures ....................................................................8
Chapterg4: Life,gHealth,gandgLossgofgIncomegExposures .........................................................12
Chapterg5: RiskgManagementgTechniques:gNoninsurancegMethods........................................16
Chapterg6: InsurancegasgagRiskgManagementgTechnique:gPrinciples .......................................20
Chapterg7: InsurancegasgagRiskgManagementgTechnique:gPolicygProvisions ...........................25
Chapterg8: SelectinggandgImplementinggRiskgManagementgTechniques .................................28

PARTg2:
COMMERCIALgRISKgMANAGEMENTgAPPLICATI
ONS:gPROPERTY-LIABILITY

Chapterg9: RiskgManagementgandgCommercialgProperty:gPartgI .............................................31
Chapterg10: RiskgManagementgandgCommercialgProperty:gPartgII ............................................34
Chapterg11: RiskgManagementgandgCommercialgLiabilitygRisk................................................38
Chapterg12: Workers'gCompensationgandgAlternativegRiskgFinancing ......................................41

PARTg3:
PERSONALgRISKgMANAGEMENTgAPPLICATI
ONS:gPROPERTY-LIABILITY

Chapterg13: RiskgManagementgforgAutogOwners:gPartgI ...........................................................44
Chapterg14: RiskgManagementgforgAutogOwners:gPartgII ..........................................................47
Chapterg15: RiskgManagementgforgHomeowners ......................................................................50

PARTg4:
RISKgMANAGEMENTgAPPLICATIONS:gLIFE,gHEA
LTH,gANDgINCOMEgEXPOSURES

Chapterg16: LossgofgLife ...........................................................................................................54
Chapterg17: LossgofgHealth ....................................................................................................... 59
Chapterg18: RetirementgPlanninggandgAnnuities .......................................................................65
Chapterg19: EmployeegBenefits:gLifegandgHealthgBenefits .......................................................69
Chapterg20: EmployeegBenefits:gRetirementgPlans ...................................................................73
Chapterg21: FinancialgandgEstategPlanning ...............................................................................77

PARTg5: THEgRISKgMANAGEMENTgENVIRONMENT

Chapterg22: RiskgManagementgandgthegInsurancegIndustry.......................................................81
Chapterg23: FunctionsgandgOrganizationgofgInsurers.................................................................85

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Chapterg24: GovernmentgRegulationgofgRiskgManagementgandgInsurance ...............................89




TEST BANK
g

PARTg1: RISKgANDgTHEgRISKgMANAGEMENTgPROCESS

Chapterg1: IntroductiongtogRisk...............................................................................................95
Chapterg2: RiskgIdentificationgandgEvaluation ...................................................................... 100
Chapterg3: PropertygandgLiabilitygLossgExposures ................................................................ 106
Chapterg4: Life,gHealth,gandgLossgofgIncomegExposures ....................................................... 114
Chapterg5: RiskgManagementgTechniques:gNoninsurancegMethods ..................................... 119
Chapterg6: InsurancegasgagRiskgManagementgTechnique:gPrinciples ..................................... 124
Chapterg7: InsurancegasgagRiskgManagementgTechnique:gPolicygProvisions ......................... 130
Chapterg8: SelectinggandgImplementinggRiskgManagementgTechniques ............................... 135

PARTg2:
COMMERCIALgRISKgMANAGEMENTgAPPLICATI
ONS:gPROPERTY-LIABILITY

Chapterg9: RiskgManagementgandgCommercialgProperty:gPartgI ........................................... 140
Chapterg10: RiskgManagementgandgCommercialgProperty:gPartgII .......................................... 145
Chapterg11: RiskgManagementgandgCommercialgLiabilitygRisk.............................................. 150
Chapterg12: Workers'gCompensationgandgAlternativegRiskgFinancing .................................... 155

PARTg3:
PERSONALgRISKgMANAGEMENTgAPPLICATI
ONS:gPROPERTY-LIABILITY

Chapterg13: RiskgManagementgforgAutogOwners:gPartgI ......................................................... 160
Chapterg14: RiskgManagementgforgAutogOwners:gPartgII ........................................................ 165
Chapterg15: RiskgManagementgforgHomeowners .................................................................... 168

PARTg4:
RISKgMANAGEMENTgAPPLICATIONS:gLIFE,gHEA
LTH,gANDgINCOMEgEXPOSURES

Chapterg16: LossgofgLife ......................................................................................................... 173
Chapterg17: LossgofgHealth ..................................................................................................... 178
Chapterg18: RetirementgPlanninggandgAnnuities ..................................................................... 184
Chapterg19: EmployeegBenefits:gLifegandgHealthgBenefits ..................................................... 190
Chapterg20: EmployeegBenefits:gRetirementgPlans ................................................................. 195
Chapterg21: FinancialgandgEstategPlanning ............................................................................. 200

PARTg5: THEgRISKgMANAGEMENTgENVIRONMENT

Chapterg22: RiskgManagementgandgthegInsurancegIndustry..................................................... 205
Chapterg23: FunctionsgandgOrganizationgofgInsurers............................................................... 211
Chapterg24: GovernmentgRegulationgofgRiskgManagementgandgInsurance ............................. 218

CHAPTER 1 g

, v



Introduction to Risk g g




THEgBURDENgOFgRISKgDEFINITION
SgOFgRISK
PuregversusgSpeculativegRiskgStat
icgversusgDynamicgRiskgSubjecti
vegversusgObjectivegRisk
SOURCESgOFgPUREgRISK
PropertygRisks
gLiabilitygRisk

s
Life,gHealth,gandgLossgofgIncomegRisksgFinancia
lgRisk
MEASUREMENTgOFgRISK
ChancegofgLoss
PhysicalgHazard
gMoralegHazardg

MoralgHazard
DegreegofgRisk
MANAGEMENTgOFgRISK

KEYgTERMSgANDgCONCEPTS

ChancegofglossgC
hiefgriskgofficergC
ostgofgriskgDegree
gofgriskgDynamicg

risksgEnterprisegri
skgmanagementgF
inancialgrisksgFre
quencygHazardsgI
ntegratedgriskgma
nagementgMoralg
hazardgMoralegha
zardgObjectivegris
kgPeril
Puregrisk
gRisk

Riskgmanagement
gRiskgmanagemen

tgprocess
RiskgmanagergS
everitygSpeculat
ivegriskgStaticgri
sksgSubjectivegr
isk

,