Which of the following is a situation for which insurance will cover you?
A) Marcy is not sure she is going to like her new job, but she cannot survive financially if she doesn't keep it. She wants to buy salary insurance in the event she wants to quit the job.
B) Electronics R Us used to have stereos on the cutting edge of technology. Now, though, with mp3 players, iPods, and other devices, the company is falling behind. It wants to purchase insurance to carry the business in the event it can't keep up with new products.
C) Maurice has a gas station in the desert. His customers are mostly vacationing tourists. With gas prices rising so high, people are not taking vacations as often as they used to. Maurice wants insurance to help him through hard times if he loses a lot of tourist traffic.
D) Addie owns a small basket-making shop in Guinea-Bissau in west Africa. Because of political unrest there, she fears she may have to flee the country. She wants insurance to cover her in case she needs to open her business in a new country.
E) Gus owns a 400-acre soybean farm in the midwest. Over the past few years, there has been little rainfall to sustain the crop. Gus wants insurance to cover crop loss in the event of drought.
Answer: E
Explanation: E) Insurance that people may obtain voluntarily from the U.S. government includes crop insurance. The other answer choices represent personal risks, market risks, and political risks, which are uninsurable risks.
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