Kasturi Bhd. has historically purchased separate policies for property insurance and liability insurance. Each of the po
Posted: Tue Nov 23, 2021 8:40 am
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.
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.