Which of the following insurance carriers are required to participate in Illinois Worker’s Compensation Assigned Risk Pool? All companies authorized to write insurance in Illinois Only the 10 companies that write the most worker’s Compensation policies in Illinois All companies licensed to write Worker’s Compensation All companies writing over $1000,000 in annual premiums

Which of the following insurance carriers are required to participate in Illinois Worker’s Compensation Assigned Risk Pool? All companies authorized to write insurance in Illinois Only the 10 companies that write the most worker’s Compensation policies in Illinois All companies licensed to write Worker’s Compensation All companies writing over $1000,000 in annual premiums

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 1.9CE

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Actuaries perform the crucial task of estimating the time paths and probability distributions of costs and revenues for different insurance contracts. Becoming an actuary takes several years, and involves passing a series of rigorous examinations given either by the Society of Actuaries or by the Casualty Actuarial Society. Usually, the individual works for an insurance company while studying for the exams, and the company gives the individual time off to study for the exams. Passing an exam usually results in a significant pay increase. a) Do actuaries have general or firm-specific human capital? b) Who “pays for” the worker’s time off to study for the exams? Choose one answer and explain. · the worker does, by accepting a lower salary · the firm does, to invest in the worker’s human capital c) Why does the individual get a pay increase after passing each exam? Why not evaluate the employee once per year, like many companies do?
The manager of your company’s pension fund is compensated based entirely on fund performance; he earned over $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal
Risk selection" refers to -- a. the incentive of insurance companies to avoid enrolling people who are in worse health and likely will require costly medical care. b. the phenomenon of individuals waiting until they are sick before purchasing health insurance. c. the process by which the Federal government identifies individuals at greatest risk for needing costly health care and provides them special high-risk insurance coverage. d. the incentive of shareholders to avoid investing in insurance companies which insure the most high risk patients.
True or False: Employee compensation in the form of health insurance is currently subject to personal taxation, making it less desirable for people to get health insurance provided by their employer and more desirable for them to purchase it from a private insurance company.
Which of the following is considered insurance producer misrepresentation?A. Switching from one insurance coverage to a better one.B. Declaring that dividends will be paid. C. Representing many insurance companies simultaneously D. Requiring an insurance applicant to pay their premium to the insurance company.
Which one of the statements on AgriInsurance is NOT correct? Question 37 options: AgriInsurance provides protection to margin losses Cost is shared between federal/provincial governments and the farmer AgriInsurance provides protection to producers from production (i.e., yield) losses AgriInsurance is a crop insurance program AgriInsurance is one of the business risk management (BRM) programs of Canada
PEOs enable small businesses to attain insurance and other benefits at lower costs because the PEO absorbs the small company's employees into a larger insurable group. True False
An employer faces two types of employees. Regular workers are 70% of the population and generate $100,000 in productivity. Exceptional workers are 30% of the population, and generate $120,000 in productivity. Workers know their value, and reject salaries below their productivity. If the employer offers a salary equal to the average productivity hoping to eliminate adverse selection, what will be the employer’s per-employee profit? Group of answer choices $10,000. $4,000. $0. $-6,000 $-10,000
Which best describes workers’ compensation insurance? It is federally mandated but administered by the states. It is not federally mandated but administered by the states. It is federally mandated and administered. It is optional.
Consider Bruno who manages an underwriting team in an insurance firm. Recently, the management of Bruno’s firm informed him of their decision to create a new risk assessment team, consisting of data scientists with machine learning expertise, and reduce the size of Bruno’s underwriting team. Bruno’s underwriting team will now work with the new risk assessment team in order to determine whether to provide insurance to applicants. Consider Angela who currently works as a data scientist with machine learning expertise. Recently, she was offered a job by Bruno’s firm. The job offer includes a higher salary than her current job and the freedom to choose the number of work hours per day. But Angela is also an amateur musician who desperately dreams of becoming a professional one day. This motivates her to practice music as much as possible, which makes her value her free time very much. Using the model of individual choice, and assuming Angela accepts the job offer, graphically illustrate…
A real estate firm faces two kinds of employees, those able to sell 10 houses/year, and those able to sell 5 units/year. High-productivity employees are willing to work for $100K/year while low-productivity employees are willing to work for only $50K/year. Which compensation scheme would be able weed out low productivity workers the best? Group of answer choices Offer a salary of $100K. Offer a salary of $75K plus $5K/unit commission. Offer a sales commission of $10K/unit. Offer a sales commission of $20K a unit starting with 6th unit. Offer a salary of $50K plus a sales comission of $10K per unit.
Problem: Consider a state in which automobile drivers are divided equally into two types of drivers: careful and reckless. The average annual auto-insurance claim is $400 for a careful driver and $1,200 for a reckless driver. Suppose that the state adopts an insurance system under which all drivers are placed in a common pool and allocated to insurance companies randomly. An insurance company cannot refuse coverage to any consumer it is assigned, but a consumer who is unhappy with the insurance company has the option of being reassigned (randomly) to another. By law, each insurance company must charge the same price to all its customers (i.e. no price discrimination). Assume that the insurance market is perfectly competitive and that claims represent all the costs associated with provision of insurance. Predict the minimum price of auto insurance under two alternative policy scenarios given below. Show all of your work and explain your answers. A. Auto insurance is mandatory B. Auto…