Discuss what you think the ramifications should be if an insurer, or an individual or business, misrepresents themselves either deliberately;y or by mistake. Give an examples, fact or fiction.

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Trinidad TremblayLv2

29 Jul 2019

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Commercial Insurance is a large stock property and liability insurer that specializes in the writing of commercial lines of insurance. The board of directors has appointed a committee to determine the feasibility of forming a new subsidiary insurer that would sell only personal lines of insurance, primarily homeowners and auto insurance. The new insurance company would have to meet certain management objectives. One member of the board of directors believes the new insurer should be legally organized as a mutual insurer rather than as a stock insurer. Assume you are an insurance consultant who is asked to serve on the committee. To what extent, if any, would each of the following objectives of the board of directors be met by formation of a mutual property and casualty insurer? Treat each objective separately.

a. Commercial Insurance must legally own the new insurer.

b. The new insurer should be able to sell common stock periodically in order to raise capital and expand into new markets.

c. The policies sold should pay dividends to the policyholders.

d. The new insurer should be licensed to do business in all states.

1. After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, âHow do you think we could recruit an agency force if everybody took your advice?â How would you answer that question?

2. Is the inherently discriminatory nature of underwriting acceptable from a public policy standpoint? Would shifting to a primarily behavior-based approach to risk assessment be feasible?

3. What actuarial adjustments are built into the pricing of life insurance premiums?

4. Occasionally, Insurer X will reinsure part of Insurer Yâs risks, and Insurer Y will reinsure part of Insurer Xâs risks. Doesnât this seem like merely trading dollars? Explain.

erinhyena196

1. How do agents and brokers differ?

2. After hearing the advice that it is usually best to buy life insurance from a person who has been in the business at least five years, a life insurance company general agent became upset and said rather vehemently, âHow do you think we could recruit an agency force if everybody took your advice?â How would you answer that question?

3. Is the inherently discriminatory nature of underwriting acceptable from a public policy standpoint? Would shifting to a primarily behavior-based approach to risk assessment be feasible?

4. What actuarial adjustments are built into the pricing of life insurance premiums?

5. Occasionally, Insurer X will reinsure part of Insurer Yâs risks, and Insurer Y will reinsure part of Insurer Xâs risks. Doesnât this seem like merely trading dollars? Explain.

6. What is the relationship between the following functions within an insurance company?

a. Marketing and underwriting

b. Underwriting and actuarial

c. Actuarial and investment

d. Legal and underwriting

e. Claims and marketing

f. Claims adjusting and actuarial