678 assignment

please look at the attached document 

1. How does rate making, or the pricing of insurance, differ from the pricing of other products?

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. Answer the following questions:

·

Define the meaning of underwriting.

· Briefly explain the basic principles of underwriting.

· Identify the major sources of information available to underwriters.

3. Briefly describe the sales and marketing activities of insurers.

4. Explain the basic objectives in the settlement of claims.

5. Describe the steps involved in the settlement of a claim.

6. Answer the following questions:

·

· What is the meaning of reinsurance?

· Briefly explain the reasons for reinsurance.

· Explain the meaning of “securitization of risk.”

7. Distinguish between facultative reinsurance and treaty reinsurance.

8. Briefly describe the following insurance company operations:

·

· Information systems

· Accounting

· Legal services

· Loss control

9. Explain the importance of insurance company investments and identify the various types of investments of insurers.

10. Please answer the following questions: ­­­­­

a. What are the three major sections of a balance sheet?

b. What is the balance sheet equation?

11. Please answer the following questions: ­­­­­

a. What types of assets appear on the balance sheet of an insurance company?

b. Why are the liabilities of a property and casualty insurance company difficult to measure?

12. Please answer the following questions: ­­­­­

a. What are the two major sources of revenue for a property and casualty insurance company?

b. What are the major expenses of a property and casualty insurance company?

13. Please answer the following questions: ­­­­­

a. How is the combined ratio of a property and casualty insurance company calculated, and what does the combined ratio measure?

b. How is it possible for a property and casualty insurance company to be profitable if its combined ratio exceeds 1 (or 100 percent)?

14. What are the major categories of expenses for a life insurance company?

15. Please answer the following questions: ­­­­­

a. What are the major regulatory objectives that must be satisfied in insurance rate making?

b. What are the major business objectives?

16. Explain the following methods of merit rating:

a. schedule rating

b. experience rating

c. retrospective rating

17. Explain why the insurance industry is regulated.

18. Briefly explain the significance of the following legal cases and legislative acts with respect to insurance regulation:

· Paul v. Virginia

· South-Eastern Underwriters Association Case

· McCarran-Ferguson Act

· Gramm-Leach-Bliley Act (also known as the Financial Modernization Act of 1999)

19. Explain the principal methods for regulating insurance companies.

20. Identify the principal areas of insurance company operations that are regulated by the states.

21. Briefly describe the major types of rating laws.

22. Please answer the following questions:

· Explain the major arguments for federal regulation of the insurance industry.

· Explain the major arguments in support of state regulation of the insurance industry.

· Describe the shortcomings of state regulation.

23. Identify the major techniques that regulators use to monitor insurance company solvency.

24. The Federal Insurance Office (FIO) has made a number of recommendations for modernizing insurance regulation. Briefly describe the FIO’s recommendations for each of the following:

· Areas for reform at the state level

· Areas for direct federal involvement in regulation.

· Market conduct recommendations

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1. What is the meaning of risk management? Describe the benefits of a risk management program.

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. Explain the objectives of risk management both before and after a loss occurs.

3. Describe the steps in the risk management process.

4. What is enterprise risk management and how does it differ from traditional risk management?

5. What are the steps in the enterprise risk management process?

6. What are the benefits of implementing an enterprise risk management program?

7. What is the underwriting cycle? How do industry capacity and investment returns impact the insurance market?

8. Why is time value of money analysis used in risk management decision making?

9. Why is the ability to forecast losses important for a risk manager?

10. Describe other tools that may be of assistance to risk managers?

11. Describe the basic characteristics of stock insurers.

12. Describe the basic features of mutual insurers.

13. Identify the major types of mutual insurers.

14. Explain the legal distinction between an agent and a broker.

15. Describe briefly the following distribution systems in the marketing of life insurance.

a. Personal selling systems

b. Financial institution distribution systems

c. Direct response system

d. Other distribution systems

16. Describe briefly the following distribution systems in the marketing of property and casualty insurance.

a. Independent agency system

b. Exclusive agency system

c. Direct writer

d. Direct response system

e. Multiple distribution systems

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