Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Assume that insurers operate in an environment where price regulation does not exist. Describe two potential benefits that this type of system provides to consumers as well as two potential costs.

2. Define agency costs and discuss whether these costs reduce business value.

3. Describe the common objectives that employers have for their firmâ??s benefits plan and indicate whether employees value the benefits package equally, and/or in the same manner as the employer.

4. How do insurers control for adverse selection problems in health insurance products?

5. What are the advantages associated with using a modeling approach (e.g., vs. using historical data) to estimate expected losses from catastrophic events?

Please show all work in an Excel file for the following problems:

6. ABC Life is interested in selling a five-year, single premium life insurance policy with the following features:

- Death benefit of $200,000.
- Death benefits are payable at the end of the year.
- Each policyholder will pay a single premium at the beginning of policy year one.
- A total of 20,000 policies will be sold to males aged 45
a. Using the mortality information provided below and a 6 percent rate of return assumption, what is the single premium ABC Life should charge each insured?
Beginning of Year Age Probability
of Death During Year
1 45 .0044
2 46 .0047
3 47 .0052
4 48 .0058
5 49 .0064

b. find out the level annual premium for the same policy (i.e., what amount would the insured have to pay each year, for 5 years, for this coverage?).

7. ABC Property and Casualty is interested in selling coverage to homeowners in a new development. Homes in this development are valued at $500,000. They estimate that losses per exposure (home) will follow the following discrete distribution:

Loss Amount Probability
$500,000 0.005
$100,000 0.01
$50,000 0.03
$25,000 0.05
$10,000 0.07
$5,000 0.10

a. find out the gross premium ABC should charge for full coverage if it includes a 15% loading for administration and profit.

b. How much should ABC charge for a policy with a $10,000 deductible?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927796

Have any Question? 


Related Questions in Basic Finance

Do you think education would be better if it were

Do you think education would be better if it were privatized in the United States? What are the benefits of education being privatized? What are the drawbacks? What are the benefits of public education? What are the draw ...

Suppose that you are a wheat farmer answer the following

Suppose that you are a wheat farmer. Answer the following questions. a. It is September, and you intend to have 50,000 bushels of wheat harvested and ready to sell in November. The current spot market price of wheat is $ ...

The stock of company a has a beta of 15 the return of

The stock of company A has a beta of 1.5. The return of market portfolio is 9% and the risk-free rate is1%. 1) According to the Capital Asset Pricing Model (CAPM), what is the expected return of this stock? 2) Assuming t ...

1 consider the right-hand side of the blackscholes-merton

1. Consider the right-hand side of the BlackScholes-Merton formula as consisting of the sum of two terms. Explain what each of those terms represents. 2 .Explain each of the following concepts as they relate to call opti ...

1 what part of the federal fair housing act is applicable

1. What part of the federal Fair Housing Act is applicable to an apartment project? 2. Define net lease. 3. Why does shopping center management promote shopper-attraction activities? 4. How does a shopping center utilize ...

1 distinguish between the operations of a mortgage banker

1. Distinguish between the operations of a mortgage banker and a mortgage broker. What are the five major minimum standards that an independent mortgage broker or loan office must pass to be licensed with the NMLS? 2. Wh ...

You are assigned a paper and excel backup on exxon company

You are assigned a paper and excel backup on EXXON company. You will utilize all the material we have covered to analyze and assess the corporate health of the company. I provide some leading questions to be answered in ...

Part a answer each of the following questions in a

Part A: Answer each of the following questions in a composition of one to two paragraphs, or perform calculations as requested. 1. Define liquidity risk, default risk and taxability risk, and explain how these risks rela ...

1 why do researchers want the error variance in their data

1. Why do researchers want the error variance in their data to be small? 2. Why do researchers use meta-analysis?

1 why do researchers use factor analysis2 imagine that you

1. Why do researchers use factor analysis? 2. Imagine that you conducted a factor analysis on a set of variables that were uncorrelated with one another. How many factors would you expect to find? Why?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro