13 Jan Uniformity and Insurance

Week 1 discussion

DQ1

Briefly state the formal definition of risk and discuss the roles contributing to the definition of risk. Based upon your personal opinion of risk, should the formal definition of risk be changed? Why or why not?

DQ2

What is the relationship between uncertainty and risk? In your opinion, how do uncertainty and risk impact decision-making?

DQ3

Refer to the traditional risk management matrix discussed in chapter 4 of the Saylor eBook. Based upon this matrix, when would you do each of the following: (a) When would you buy insurance?, (b) When would you avoid the risk?, (c) When would you retain the risk, and (d) When would you lose control? With each scenario be certain to provide a brief rationale for decision.

Week 2 discussion

DQ1

Political Risk

Describe the steps of political risk management. Briefly discuss how can political risk can impact an organization’s profit making ability. Please support your response with concepts from the text or real life examples.

DQ2

Real & Personal Property

What is the difference between real property and personal property? Why do insurers make a distinction between the two? Please support your response with concepts from the text or real life examples.

DQ3

Briefly describe the collateral source rule. Discuss how the elimination of the collateral source rule and a shortened statute of limitations might affect the availability and affordability of liability insurance. Please support your response with concepts from the text or real life examples.

Week 3 discussion

DQ1

Purchasing Insurance

When it comes to the purchase of insurance, what factors should an individual consider? Should certain factors be given more consideration than others? Why or why not? Please support your response with concepts from the text or real life examples.

DQ2

Insurance Rates

Currently, when considering rates for auto insurance, insurers will consider factors such as age, gender, marital status, etc. Based upon your personal and professional experiences, as well as knowledge gained in this course, do you think it is socially desirable to do away with age, gender and marital status as classification factors for auto insurance premium rates? Why or why not? What would be the implication if everyone paid the same rate?

DQ3

Malpractice vs. Errors and Omissions

Discuss how malpractice differs from errors and omissions? Provide an example of each in your discussion.

Week 4 discussion

DQ1

DALY & HALE

Briefly describe disability-adjusted life year (DALY) and health adjusted life expectancy (HALE). What relationship would you expect to see between the figures produced at the same time by DALY and HALE on a given population? Discuss why such a relationship might exist.

DQ2

Affordable Insurance

How is yearly renewable term life insurance made more affordable under a group arrangement? Provide a real life example to support your response.

Week 5 discussion

DQ1

Social Security

From time to time, you may hear that social security is in financial trouble and that you may not receive the benefits you expect. Do you think this is true? If it is true, what should be done about it? Please support your ideas with concepts from the text, outside readings or real life examples.

DQ2

Insurance Differences

What are the main ways in which group insurance differs from individual insurance? Why is group insurance proportionately less expensive than individual insurance? What does it mean to self-insure and have the stop-loss programs’ for workers’ compensation and for group health insurance? Please support your ideas with concepts from the text, outside readings or real life examples.

Week 6 discussion

DQ1

Cash Balance Plans

Cash balance plans have become increasingly popular in recent years. Why do employers like cash balance plans relative to other types of defined benefit plans? If you were an employer which type of plan would you prefer and why? Please support your response with concepts from the text, outside readings or real life examples.

DQ2

Protection to Employers

Explain the difference between a group deferred annuity contract and a deposit administration contract. Which offers more protection to employers against the risk of inadequate funding of a promised, defined benefit? Please support your response with concepts from the text, outside readings or real life examples.

DQ3

Disability Insurance

Why do most group disability insurance plans limit income replacement to no more than 70 percent of salary, even if employees are willing to pay more to get 100 percent coverage? In which ways does group disability insurance differ from individual disability insurance? Please support your response with concepts from the text, outside readings or real life examples.

Week 7 discussion

DQ1

Reinsurance Markets

Describe the emerging reinsurance markets. Why are they developing in Bermuda? Please support your response with concepts from the text, outside readings or real life examples.

DQ2

Uniformity and Insurance

What methods are used to create uniformity in insurance regulation across the states? In your opinion, are these methods effective or should more be done? Why or why not? Please support your response with concepts from the text, outside readings or real life examples.

DQ3

Paying more for Privacy

How concerned are you about privacy? Are you more protective about your health or financial information? When companies have to spend money to comply with the law, it’s generally the consumer who ends up paying. Would you accept slightly higher premiums to cover the cost of keeping your personal information private? Why or why not? Please support your response with concepts from the text, outside readings or real life examples.