Question

Answer the following questions:

4 and 5 page 437 and 438

4.)To determine and quantify the Bedo’s current property and liability insurance planning needs thoroughly asses the following:
a.) possible liability exposures faced by the bedos
b.) their current level of homeowners insurance coverage compared to industry benchmarks
c.) the amount of liability coverage in the Bedo’s homeowners policy compared to their possible liability exposure
d.) the need for specific policy endorsements
e.) the split limit coverage limit on their personal automobile insurance policies
f.) the need for Part D Coverage for damage to your car automobile insurance coverage
g.) the need for an umbrella or excess liability policy


5.) List and comment on other policy features that should be evaluated as part of the documentation and evaluation of the Bedo’s property and liability insurance planning needs and efforts including but not limited to the following:
a.) Do the Bedo’s have sufficient documentation to verify property or values in the event of a loss?
b.) Assume that the Bedo’s were shopping for a new car. What attributes of the car would result in a lower annual insurance premium?


Page 500 4 and 5

4.) Summarize the Bedo’s time horizon risk tolerance investment attitude economic expectations and risk capacity for each of their investment funded goals (e.g emergency fund situation, retirement investment plan,eduation funding goal and the art gallery and home improvement.


5.)Summarize your observation about Tyler’s and Mia’s current planning efforts and the identified planning need(s) for each of the investment funding goals,e.g emergency fund situation, retirement investment plan, education funding pool, and the art gallery and home improvement goals.)Complete an investment profile and portfolio summary Form for each goal to determine   whether changes are needed. Incorporate text,bullets,and graphics in your explanation ,For example what information might be shown graphically and specially and what kind of graphics might most effectively convey this analysis to the Bedo’s.

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4.)To determine and quantify the Bedo’s current property and liability insurance planning needs thoroughly asses the following:

a.) possible liability exposures faced by the bedos

The Bedos hold a large amount of assets in the form of personal assets and real assets such as house, automobiles, yard equipment, jewelry, collectibles, etc. The total value of the real assets is close to $366,000 on the basis of their current values. There is the risk that these assets may be stolen and the household also has home and auto loans, which can increase their liability to pay these loans even if the asset is stolen or tampered.

b.) their current level of homeowners insurance coverage compared to industry benchmarks

The current homeowners insurance of the Bedos is only $100,000 coverage under HO-3 policy. The insured value of the house is $225,000. Given the current value of $250,000 of the house, it means that the house is 90% insured. As per the industry benchmarks, 80% coinsurance is needed and so this seems sufficient at the time. However, their lack of clarity about the availability of inflation protection increases the risk since lack of inflation protection cover can expose them to penalties for less than 80% coverage....

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