Kasturi Bhd. has historically purchased separate policies for property insurance and liability insurance. Each of the po

[answerhappygod]

Kasturi Bhd. has historically purchased separate
policies for property insurance and liability insurance. Each of
the policies had RM4 million retention. The company is now
considering the purchase of a bundled policy which covers both
property and liability exposures. The retention of the bundled
policy is to be RM8 million. Sketch a graph illustrating the areas
of unnecessary coverage that will exist if Kasturi Bhd. continues
with separate policies.