Question

question 3
10 pts
a woman has just received a very expensive piece of jewelry. the woman has homeowner’s insurance. which statement would it be most appropriate for her to make to her insurance agent?

○ \i think i should get speculative risk insurance.\

○ \i realize that if this jewelry is stolen it will be considered vicarious liability.\

○ \i think i need a personal property floater.\

○ \i will deduct the cost of the jewelry from my premium.\

Explanation:

1. Analyze Option 1: Speculative risk insurance is for risks with potential gain (e.g., investing), not for insuring jewelry. Eliminate this.
2. Analyze Option 2: Vicarious liability is when one is liable for another's actions (e.g., employer for employee), not related to stolen jewelry. Eliminate this.
3. Analyze Option 3: A personal property floater is an insurance endorsement to cover valuable personal property (like expensive jewelry) that may exceed standard homeowner's insurance limits. This fits the scenario.
4. Analyze Option 4: Premiums are based on risk/coverage, and deducting jewelry cost from premium is not how insurance works. Eliminate this.

Answer:

C. "I think I need a personal property floater."