You are a damage insurance broker and you receive a call from a potential client who wants to insure his vehicle. After having assessed his needs, you obtain the following proposals from the insurers you represent:

Insurer A

Section A		$1,000,000
Section B	Protection 1	$500 deductible

Endorsement Q.E.F. No. 20		$50 per day/$1,500 per occurrence
Endorsement Q.E.F. No. 27
Section B	Protection 1	$500 deductible	Amount of insurance: $50,000
Premium		$1,200

Insurer B

Section A		$1,000,000
Section B	Protection 2	$500 deductible
	Protection 3	$250 deductible

Endorsement Q.E.F. No. 20		$40 per day/$1,200 per occurrence

Endorsement Q.E.F. No. 27
Section B	Protection 2	$500 deductible
	Protection 3	$250 deductible
Amount of insurance		$25,000

Endorsement Q.E.F. No. 34:
Section 1	Subsection A	$10,000
	Subsection B	$10,000
	Subsection C	$2,000
Premium		$1,285

For what reason could recommendation B be more appropriate even though it has a higher premium?`

Recommend personal-lines and commercial lines automobile insurance products adapted to the clients' needs Competency 03-412

Share