Question

Question 1

1. Indemnity insurance…

  

a. reimburses for certain types of losses such as accidents or theft.

   

b. is the basis for most of the health insurance coverage in the U.S.

   

c. is often “experience-rated” with premiums based on expected losses.

   

d. is sometimes called “casualty insurance.”

   

e. All of the above

Question 10

An insurance company initially is insuring a pool of 200 people, each of whom has a 5% chance of a $10,000 loss due to illness.

(III.) The insurer needs to charge a premium to each of the 200 people that is enough to fully cover the expected loss per person, plus an additional 8% “loading cost” to each person to cover all its operating expenses and generate a profit. How much does the premium per person have to be (in dollars)?

  

a. $540

   

b. $580

   

c. $625

   

d. $1,080

Question 12

An insurance company was initially insuring a pool of 200 people, each of whom has a 5% chance of a $10,000 loss due to illness.

In addition, a new, “high risk” group of 50 people is also being insured. Each of these 50 people has a 50% chance of the $10,000 loss.

(V.) Suppose the insurer must group everyone together into a single 250 person pool. If the insurer must now charge everyone the same premium, how much does it have to be (in dollars per person, including the 8% loading cost)?

  

a. $1,080

   

b. $1,400

   

c. $1,512

   

d. $5,940

Answer 1

Answer:

1.

Here by observing , we can say that Option E is right answer.

i.e.,

All of the above

Here Indemnity insurance is the one party gets the inclusion by another party(the back up plan) for any sort of misfortunes as referenced in the understanding that may emerge later on.

Repayment protection isn't care for other general protection where one gets claims against tha harms like property, rather here the guaranteed hets guarantee for harms that may emerge because of the flaw or any sort of carelessness brought about by the safeguarded party.

If there should arise an occurrence of repayment protection the guideline of reimbursement is followed which expresses that the guaranteed will be liabable for cliams upto the degree of harm with the goal that the safeguarded will be brought to the position where the harm didn't occur.

Repayment may likewise be called as setback protection in light of the fact that if there should be an occurrence of loss protection the individual gets secured for any demonstration that occurred because of oversight or any carelessness with respect to the guaranteed.

Likewise, reimbursement is experience based as the safeguarded lerson's reputation is checked and it is watched on the off chance that the individual in question has taken any cases previously and paid the premiums on schedule.

In light of the perceptions of the protected individual's information, the premium is chosen with the goal that any future misfortune that may happen can be redressed.

Well-being is dubious and anything can transpire later on, in this manner repayment protection is utilized in medical coverage where the well-being misfortune perhaps because of some carelessness of the individual.

Fire and burglary likewise happen when the individual are not mindful or due their own carelessness and henceforth here the repayment protection becomes possibly the most important factor.

Post remaining questions as separate post. Thank you,