Insurance

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Calculate the present value of an annuity given the following information: number of periods= 3; rate of 6%; and a payment of $200.
1. What are the potential benefits of having a Single Payer Universal Health Insurance system? 2. What are the potential detriments of having a Single Payer Universal Health Insurance system?
A PPO uses a discount on charge arrangement. Marie incurred total charges by a hospital of $20,000, and the percentage paid to the provider is 70%. Marie's contract with the PPO specifies her co-pa...
Name three ways in which the assets of a life insurance company differ from the assets of a property and casualty insurance company.
George and Nancy have actual cash value (AVC) coverage on their personal property. When a 5-year old TV is stolen, they learn its replacement value is $1,500 and the expected life of such a TV is 7...
How does liquidity risk for a property casualty insurer differ from that for a life insurance company?
Why is a life insurance tax exempt, but if you inherit a house you get taxed?
Briefly describe the following commercial property insurance coverages: a. Builders risk insurance b. Condominium insurance c. Equipment breakdown insurance d. Difference in conditions (DIC) in...
What are the four requirements that must be met for an insurance contract to be legally enforceable? Briefly explain the benefits of each requirement and support your answers with examples Explain...
The essence of insurance is the transfer of risk to an independent third party. Self-insurance presupposes that: a) the risk is always transferred to re-insurance company. b) the risk is spread b...
Although property and casualty insurance can be obtained to indemnify for almost any peril that might cause a loss, certain exceptions to coverage that relieve the insurance company from paying are...
1. What is the difference between Moral Hazard and Morale Hazard? 2. Why Moral Hazard is important concept to insurance company?
What arguments would you make for continuing regulatory approval of insurance rates?
Kevin owns a modified endowment contract. Kevin recently reassessed his insurance needs and decided that he would like to exchange his current modified endowment contract for a different insurance...
Explain which types of insurance coverage (a) or (b) within each pair would most likely cause more problems resulting from moral hazard and the reasons: i. (a) Indemnity payments of $10,000 for ea...
What is the name given to the sum of money which a person agrees to pay to an insurance? A. compensation B. premium C. investment D. commission
An insured carries all three classifications of insurance, with a deductible of $500 for collision. The insured paid an annual premium of $1,720. The insured backed into a car in a parking lot, cau...
Becky has 25/50/10 automobile insurance coverage. If two other people are awarded $35,000 each for injuries in a auto accident in which Becky was judged at fault, how much of this judgement would t...
Discuss the financial intermediation process as it applies to insurance companies and pension funds.
What do the reserves on a life insurance company's balance sheet represent?
Assume that 70% of drivers of SUVs purchase comprehensive insurance while only 50% of drivers of sedans purchase comprehensive insurance. Are purchasing comprehensive insurance and the type of vehi...
Mr. A, the major income earner for a family of four, was overheard saying to his friend Mr. B, "I don't carry any life insurance because I'm young, and I know from statistics few people die at my a...
______ provides insurance for employees who suffer a job-related illness or injury.
What is the name given to the clause in an insurance policy that makes it uneconomical to underinsure one's property? a) Endorsement b) Coinsurance c) Indemnity d) Extended.
What type of risk is uninsurable? a) Speculative b) Pure c) Financial d) Avoidable
Explain the differences between insuring and gambling. In doing so, contrast the intent of each activity.
True or False: Insurance during transit paid by the buyer is recorded by the buyer at the time of shipment.
Abby Ellen's toy store is worth $400,000 and is insured for $200,000. Assume an 80% coinsurance clause and that a fire caused $190,000 damage. What is the liability of the insurance company?
Kurt Simmons has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $5,400,...
Willy's only source of wealth is his chocolate factory. He has the utility function p(cf)^{1/2}+ (1 - p)(cnf)1/2, where p is the probability of a flood, 1 - p is the probability of no flood, and cf...
Multiple choice: 1) If the idea of insurance is to share the risks of bad outcomes, in what sense does insurance share the risks.? a. Assuming randomness of bad outcomes in a group, the probabili...
A. Use the information in the table below to find the average severity per claim. B.Use the information in the table above to estimate a probability distribution for the loss severity per claim....
Using a graph, show how an increase in the loss of income will affect the demand for health insurance for an individual who is risk averse. Discuss changes in: expected utility, expected income, pu...
Victor and Maria's next-door neighbor, Joan Saunders, was recently sued over an automobile accident and was held liable for $437,000 in damages. Joan's automobile policy limits were 100/300/50. Bec...
What are the four major-government sponsored insurance programs? Name and describe three methods used by most payers to set the fees that health plans will pay physicians. Why is it important to un...
Which situation provides the potential for the largest social loss due to insurance? a.large price distortion and inelastic demand curve b.small price distortion and elastic demand curve c.small pr...
Tina Parker, a single mother, is 20 years old. She has called on you an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are g...
How would the results change if insurance companies were not required to provide full insurance to everyone and could offer multiple policies ( including ones with either a copay or deductible)?
State independence with insurance refers to a. policyholder being better off healthy than sick in terms of income b. policyholder being better off sick than healthy in terms of income c. policyh...
Joe agreed with Auto Insurance Co. not to use his auto for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza Inc. What type...
In your opinion, are insurance companies unfair to hospitals? Are they in it solely for financial gain? What about the hospitals, are they being competent and thorough? Provide as much informatio...
The impact of reforms in both systems (Beveridge and Bismarck): a. lead to both systems emphasizing more equity b. lead to both systems emphasizing more patient choice c. lead to both systems mo...
Define no-fault insurance and discuss its pros and cons.
1. Explain the right of subrogation. 2. How does this feature help lower insurance costs?
What would it cost an insurance company to replace a family's personal property that originally cost $18,000? The replacement costs for the items have increased 15 percent.
Explain the role insurance plays in your financial situation. What are some steps you could take to better protect yourself and/or reduce your insurance costs?
What are three suggested ways a deposit insurance contract could be structured to reduce moral hazard behavior?
Suppose that you have a job paying $40,000 per year. With a 15% probability, next year your wage will be reduced to $10,000 for the year. a, What is your expected income next year? b, Suppose that...
For each of the following situations, what amount would the insurance company pay? a) Wind damage of $785; the insured has $500 deductible. b) Theft of a stereo system worth $1,300; the insured h...
Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If a family had $3,500 of jewelry and $3,800 of silverware stole...
Tina Grey bought a new Honda Civic and insured it with only 10/20/5 compulsory insurance. Driving up to her ski chalet one snowy evening, Tina hit a parked van and injured the couple inside. Tina's...
One approach to national health insurance is a system whereby all employers would be required to provide their employees with a minimum set of health insurance benefits ("An Employer Mandate"). Eva...
All of the following are advantages of risk pooling in the health insurance market except A. It gives very sick people in the pool the same access to health care and pay the same premiums as health...
What is the primary function of an insurance company? How does this function compare with the primary function of a depository institution?
Which of the following statements correctly describes the requirement of insurable interest relating to property insurance? a.An insurable interest must exist when any loss occurs. b. An insurable...
Which of the following parties has an insurable interest? I. A corporate retailer in its inventory. II. A partner in the partnership property. a. I only. b. II only. c. Both I and II. d. Neither I...
Stephanie owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. The policy contains an 80% coinsurance clause. The warehouse sustained a $50,000 loss bec...
In the United States, the majority of individuals who have private health insurance: receive it as part of a benefit package from their employers. purchase it out of their wage income and receive...
Commercial Insurance is a large stock property and casualty insurer that specializes in the writing of commercial lines of insurance. The board of directors has appointed a committee to determine t...
Company name: LA Life Insurance Life reinsurance with or without a substantial savings element. Give the following about the company. I. Industry Data II. SWOT Analysis III. Conclusions This i...
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