CHAPTER 7 PRINCIPLES OF RISK AND INSURANCE
CASE STUDY
Susan and Rick Johansson, both age 58, have been married for almost 30 years. Their family includes 8 adult children, 18 grandchildren and a new great-grandchild. They have a beautiful residence on Lake Minnehaha, where they want to celebrate their wedding anniversary.
Their children are planning to step things up a notch, starting by inviting family and friends from throughout the United States. Surprise events will include a regatta from the local yacht club and a twilight fireworks show. Some of the grandchildren will be picking up a few extra dollars acting as valets for older drivers, directing traffic, and managing the parking on the big empty field next to Susan and Rick’s home.
Alice, their oldest daughter, is a raptor biologist and has secured permission from the zoo to bring two eagles for a flyover just before the fireworks show. There will even be kayaks and paddle boats available for those who want to play in the water.
What types of risks are Susan, Rick, and the children undertaking for this soiree?
LEARNING OBJECTIVES
After completing this chapter, you should be able to do the following:
Identify the application of insurance as a risk transfer vehicle.
Determine client exposures to risk.
Identify the ...
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