|Question||1. After reviewing her personal automobile policy, Bronwyn realized that she had $75,000 of single-limit, Part A coverage; $15,000 of Part B coverage; $75,000 of Part C coverage; and “full” Part D coverage. Is Bronwyn adequately insured? Explain your answer.
2. Bronwyn was quoted $1,400 a year for split-limit coverage with the following limits: 75/150/50, assuming a $100 deductible. Are these limits adequate, given Bronwyn’s financial situation and potential liability? What would you recommend as a minimum limit for this coverage? What will be the impact of your recommendation on her policy premium?
3. The insurance company that gave her the quote for split-limit coverage also indicated that she could choose a $100, $250, $500, or $1,000 deductible. If Bronwyn wants to reduce her premium costs, what deductible should she choose? Why?
4. If she decides not to boost her liability limits, how will others be compensated for their losses—property, medical, or funeral—if she is involved in a serious accident and found liable for expenses that exceed her policy limits? Would others be compensated by Bronwyn’s policy for their injuries if she is not liable? If so, under what part of the policy?
5. Should Bronwyn continue to purchase Part C and Part D coverage? Why or why not?
6. What types of discounts might be available for Bronwyn that will reduce her annual insurance premium?
7. How does Principle 5: Stuff Happens, or the Importance of Liquidity address Bronwyn’s concerns about balancing adequate coverage, a reasonably high deductible to reduce the premium, and the need for emergency savings?
8. Bronwyn has heard about an umbrella policy but is unsure if it is needed. Would you recommend that she purchase such a policy? Explain your answer. Approximately how much will such a policy cost, assuming that she insures her townhouse and car with the same insurance company?
9. If Bronwyn were to get in an accident during her daily commute, why should she never admit guilt, sign anything, or comment on how much insurance she has?
Bronwyn Lipper, a 2009 graduate with a degree in biochemistry, has a promising career ahead other. Already, her employer has offered to pay for graduate school, and in the past 2 years, she has been promoted three times. Three years ago she purchased a townhouse for $210,000 in Laurel, Maryland. Today, her townhouse is valued at over $270,000. More recently, Bronwyn purchased a new Ford Escape hybrid. She appreciates the energy savings and the safety the SUV gives her on her 45-mile round-trip commute into Baltimore. Overall, Bronwyn feels economically secure. She has over $35,000 in savings and growing retirement accounts. On her drive home from work last night, she heard a radio report about a person who lost everything when he caused an auto accident and was underinsured. Bronwyn certainly does not want this to happen to her. her consider the following questions and issues.