Principles of Risk Management and Insurance, 13th Edition

Long description

The following list provides the information in the diagram of an example of a generalized automobile insurance plan. Each bullet is a new section of the diagram.

• State’s residual high-risk drivers

  • 5 percent

    • Insurer A: writes a 5 percent of the state’s auto insurance.

      • Issues a policy

      • Performs all service work

      • Pay claims

  • 4 percent

    • Insurer B: writes 4 percent of the state’s auto insurance.

      • Issues a policy

      • Performs all service work

      • Pay claims

  • 7 percent

    • Insurer C: writes 7 percent of the state’s auto insurance.

      • Issues a policy

      • Performs all service work

      • Pay claims

Source: Adapted from Karen L. Hamilton and Cheryl L. Ferguson, Personal Risk Management and Property-Liability Insurance, first edition (Malvern, Pennsylvania: ...