Question

liz baylor has a $100,000 ring and keeps $100,000 cash in a checking account that pays no interest. if the ring is stolen, liz will be forced to replace it at a cost of $100,000. the chance of this happening is 1/100. she can, however, get insurance that would completely reimburse to her the $100,000 if her ring was stolen. what is the largest premium she would be willing to pay if her u-function is :

Answer 1

Since, the amount of ring is $100,000, the largest premium that she will be ready to pay to insurance firm will be the same amount of $100,000.

Most individuals have insurance of some type, whether it is for their life, their home, or their car. However, the bulk of us rarely pause to consider what it is and how it functions. In a nutshell, insurance is an agreement, symbolized by a policy, under which a client receives financial security or reimbursement from an insurance firm against losses. In addition to making payments to the insured more manageable, the company pools the risks of its clients.

Insurance policies are intended to protect against the possibility of financial losses, both large and minor, that may be caused by harm to a insured or its property or through responsibility for injury or damage to a third party.

Learn more about insurance here:

https://brainly.com/question/989103

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Answer 2

Since, the amount of ring is $100,000, the largest premium that she will be ready to pay to insurance firm will be the same amount of $100,000.

Most individuals have insurance of some type, whether it is for their life, their home, or their car. However, the bulk of us rarely pause to consider what it is and how it functions. In a nutshell, insurance is an agreement, symbolized by a policy, under which a client receives financial security or reimbursement from an insurance firm against losses. In addition to making payments to the insured more manageable, the company pools the risks of its clients.

Insurance policies are intended to protect against the possibility of financial losses, both large and minor, that may be caused by harm to a insured or its property or through responsibility for injury or damage to a third party.

Learn more about insurance here:

brainly.com/question/989103

#SPJ4