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Solution Library
Situations Where Insurance Can or Cannot Be Applied
Question
There are numerous definitions of insurance. Based on the definition of insurance stated in the text, indicate whether each of the following guarantees is considered insurance.
a. A new television is guaranteed by the manufacturer against defects for 90 days.
b. A new set of radial tires is guaranteed by the manufacturer against road defects for 50,000 miles.
c. A builder of new homes gives a 10-ycar guarantee against structural defects in the home.
d. A cosigner of a note agrees to pay the loan balance if the original debtor defaults on the payments.
e. A large group of homeowners agrees to pay for losses to homes that are damaged or destroyed by fire during the year.
Summary
The question belongs to Finance. These questions are about insurance and give certain situations where insurance can or cannot be applied.
Total Word Count NA
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