Case Study Abstract: A group of investors are discussing the formation of a new property and liability insurer. The prop

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Case Study
Abstract:
A group of investors are discussing the formation of a new
property and liability insurer. The proposed
company would market a new homeowners policy
that combines traditional homeowner coverages with unemployment
benefits if the policyholder becomes involuntarily unemployed. Each
investor would contribute at least $100,000 and would receive a
proportionate interest in the company. In addition, the company
would raise additional capital by selling ownership rights to other
investors. Management wants to avoid the expense of hiring and
training agents to sell the new policy and wants to sell the
insurance directly to the public by selective advertising in
personal finance magazines.
a. Identify the type of insurance company that best fits
the above description.
b. Identify the marketing system that management is considering
adopting.