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CATASTROPHE

INSURANCE

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Insurance to protect businesses and residences against

natural disasters such as earthquakes !oods and hurricanes

and against "an#"ade disasters such as terrorist attacks$

These lo%#probabilit& high#cost e'ents are generall&e(cluded )ro" standard ha*ard insurance policies and so

catastrophe insurance is required$

a catastrophic e'ent results in an e(tre"el& large nu"ber o)

clai"s being + led at the sa"e ti"e$

Reinsurance is used along %ith catastrophe insurance to

"anage catastrophe risk$

CATASTROPHE INSURANCE

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The ethicall& questionable practice o) a salesperson

"isrepresenting or "isleading a custo"er about the

characteristics o) an insurance product

In an e,ort to "ake a sale to a potential custo"er a

salesperson could lea'e out certain in)or"ation or

describe an insurance product as so"ething the

custo"er urgentl& needs$-or e(a"ple selling li)e insurance to so"eone %ho

has no dependents is regarded as Mis selling.

.IS SE//IN0 O- INSURANCE PRO1UCTS

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The practice o) selling or suggesting related or

co"pli"entar& products to a custo"er$

Example2 A /i)e Insurance co"pan& suggesting its

custo"er sign up )or car or health insurance$

CROSS SE//IN0 O- INSURANCEPRO1UCTS

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HA3E A NICE 1A4