UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN College of Business D E PAR T M E N T O F F I NAN C E Finance 230 Fall 2007 Quotation Project Due October 12 2007 The purpose of this assignment is to show you how much insurance rates vary by company how much you can save by shopping for insurance what some of the important factors are in buying insurance and approximately how much it would cost for you to buy insurance For this project you are to use the Internet to obtain quotations for auto and life insurance Some insurance companies want to run credit checks on applicants for insurance If you do not want them to do this then do not grant permission They may decline to provide you with a quote but you should be able to find other insurers that will provide quotes without running a credit check It would be helpful if you put a note on your assignment indicating any companies that insisted on credit checks so we can alert other students For each type of coverage obtain quotations from at least FIVE different companies You should include State Farm and Allstate among the companies you research for auto insurance quotes and State Farm among the companies you research for life insurance quotes The rest of the companies are open to your discretion This is not meant to be an endorsement in any way of State Farm or Allstate but rather a means to ensure that you have among your list of companies a few that will have most of the categories of information available List the financial ratings from A M Best Standard and Poor s Fitch Moody s and Weiss if they are rated on each company Also if available list the Illinois Complaint Ratios for the company for the appropriate policies You can obtain the complaint ratios from the Illinois Division of Insurance http www idfpr com DOI Complaints ComplaintRatioLinks06 asp Since the rates are intended to reflect what you would pay for insurance you should not copy someone else s information You may use the Insure com site or another web site that provides multiple quotes for insurance or from an individual company s website Ins Web com has asked that we not use their website as they sell the information you provide to local agents who then will contact you They do not want to waste the agents time on students using the internet for a class For life insurance obtain a quotation on 200 000 in term life coverage for yourself Select whatever initial rate guarantee period you want Note that the financial ratings included on the insure com site when obtaining a life insurance quote apply only to life insurance companies included in the group not to the auto insurance companies For auto insurance use an internet site that provides multiple auto insurance quotes or obtain them directly from insurance company websites such as Allstate Progressive or State Farm If you use a site that provides personalized quotations list the rating information that is correct for your situation Find the ratings for the property liability companies for the auto quotations The Illinois Division of Insurance provides helpful information about how to obtain ratings at http www idfpr com DOI General find reputable asp The ratings from Standard and Poor s and Fitch are available on the Internet site http www insure com ratings index html or link through the course web site You do not need a username and password for this site Just type the company s name in the search box and choose an issuer search Moody s ratings are available at http www moodys com A M Best ratings are available at http www ambest com However you must register and obtain a password before you will be able to receive quotes The A M Best ratings are available in the Commerce Library if you decide not to register with the A M Best website Weiss ratings are available online but only if purchased with a credit card for 15 each NOTE You are not required or expected to purchase any quotes online from Weiss or any other ratings company However if you choose a very large company such as State Farm all the ratings for that company including Weiss should be listed on that company s web site If you find any additional sites that provide useful information about insurance please include them with your assignment This project must be in the form of a table or speadsheet See example below We will not accept printouts from the internet Your project should not be longer than two pages When you turn in this assignment also turn in a scantron that is coded with your name and net id for us to use when recording your grade DO NOT STAPLE the scantron to your project Please use a paper clip or other means so we can remove the scantron without damaging it Example Project Note The quotes ratings and ratios used here are not correct FIN 230 Insurance Quotation Project 10 12 2007 Auto Insurance Sources of information on rates www statefarm com www allstate com Quotes based on 21 year old male driver living in Champaign IL 6 month Company premium Almost Insurance Co 921 Freedom Mutual 1 037 NationMutual 859 Peking Insurance Co 1 707 Nation Farm Mutual Auto Ins 849 Term Life Insurance Sources of information on rates www insure com Insured is male 21 years old 200 000 nonsmoker policy Company premium Italy Life Insurance Co 232 Phony Life Insurance Co 200 John Smith Mutual World Life Insurance Co State All Life Ins Co 176 179 165 Weiss B n a n a n a A Illinois Complaint Ratios 0 65 0 68 1 00 n a 0 32 RATINGS A M Best S P Fitch Moody s Weiss LAg K AA B Aaa G g RR AA C Bcc Illinois Complaint Ratios n a n a RATINGS A M Best S P Fitch Moody s Z DD Aa2 B V TT A C X ST AA D T Bq B B W VVV BE H gu Y Np PP W EE AAA AAAA D B E Dcc Z F 1 37 n a 1 05