1) For these questions, download the analysis.pdf from attechment. Note, paper is the opinion of the Property Casualty Insurers Association of America. There may be others who will differ with their analysis.

a) How can rates for private passenger auto insurance be adjusted in Texas

b) What has been the general effect on consumers because of greater rate competition

c) What kind of rating system did NY recently adopt for private passenger autos and define what this kind of rating system means

d) What kinds of rating systems have most states adopted. Generally what do these systems mean to insurers

e) Overall, how would you summarize this article. What criticisms do you have of this article.

2) Justabitof Insurance is considering to expand into State X. State X has open competition in very large commercial lines ($500,000 in premium or more), but use and file on all other commercial lines. In personal lines auto all rates are set by the state and for homeowners the rates are use and file. The rating approval process for homeowners may change to pre-approval because it is a coastal state and a number of insurers have increased premiums or cancelled accounts in coastal areas. Justabitof Insurance sells personal lines and small business - it's average commercial lines account is under $10,000. You are in charge of marketing. The CEO has asked you to put together a recommendation of how you could build a market for Justabitof's products in State X. Outline the marketing and distribution plan you would propose for the CEO's consideration. You are licensed in State X, but haven't done business there. You have no offices and no agents or producers licensed in State X.

Attachment:- analysis.pdf