...is used routinely in the insurance industry. In this paper I will talk about two different types of home insurance and talk about the different risks associated with each. Discussion A portfolio is used to describe a collection of securities. In finance, the risk of an individual security differs from the risk of a portfolio composed of similar securities. In order to help us understand why, Chapter 10 in the book gave a great example on insurance companies. Let’s consider two types of home insurance: theft insurance and earthquake insurance. Lets also suppose that the risk of these two hazards is similar for a given home in a given area. Based on this information we would know that the risks of the individual policies are similar, however, the risks of the portfolios might be drastically different. For example, if the chance of theft in a given home is 1%, the insurance company would expect about 1% of the 100,000 homes in the area to experience a robbery. Thus the number of claims would be around 1,000 per year. If the insurance company holds reserves sufficient to cover roughly 1,000 claims, it will have enough to meet its obligations on its theft insurance policies. The portfolio for the earthquake insurance is a little riskier. For example, if in a given area, the risk of an earthquake is 1%, the risk of having an earthquake so low that it might not occur. However, if it did occur, since all of the homes are in the same city, the insurance company could expect as...
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...NOTE ON PROGRESSIVE CASE (TO BE CONSIDERED FOR CASE ANALYSIS) In March 2000 Progressive began to offer a new product: homeowners insurance. Made available first in an Arizona pilot, the program was extended to Michigan in October 2000, Maryland in January 2001, and Illinois in September 2001. Marketed initially through specially selected and trained independent insurance agents, Progressive’s homeowners policies were eventually to be\ offered, along with its primary product, auto insurance, through the company’s two direct channels, its 800-number and web site. Many consumers sought the convenience of bundling auto and homeowners insurance rather than dealing with separate companies for each policy. Some insurers even offered discounts to customers who consolidated their coverage. Progressive executives thus viewed homeowners insurance as a natural extension of the company’s auto-insurance product suite. In 1997 Progressive ran a trial partnership in Ohio with Travellers Casualty, a major player in homeowners insurance, whereby consumers were offered homeowners quotes when they called for auto insurance. By 2000, Progressive had decided to offer its own homeowners product. 2 The product was launched slowly in select states. The move into homeowners seemed an obvious choice for Progressive. The data-driven company had success in providing auto insurance rates that more accurately (and less expensively) reflected individual consumers’ coverage needs. Cross-selling to these satisfied...
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...rRole of an insurance agent / broker Insurance agents and brokers play an important role in marketing life insurance policies. They are the face of the insurance company.Most of the insurance policies world over are sold by insurance agents and brokers. From the insurance company point of they are the marketing and selling agents for their insurance plans. The following are the basic function they should perform. -Provide all the necessary application forms. -Submit application forms to the company. -Arrange for all the medical tests and related formalities. -Provide reminders premiums payments and return receipts. -Should help you make necesary changes in address ,nomination etc. -Help in the process of assignment -Assist you for any loan applications and related formalities -Should help you revive lapsed policies -Assist in claiming death benefits, if required ____----- ROLE OF AN INSURANCE AGENT The role of an insurance agent is to supply a comprehensive policy which will provide adequate protection in the event of a loss on your new home. It should offer coverage for your dwelling, personal property, loss of use, and liability. The amount of insurance should be equal to the replacement value of the dwelling. A bank or mortgage company cannot require insurance in excess of the dwelling replacement cost. The insurance agent can help you to calculate the replacement value of your new home. Although provisions of the basic homeowner contract are...
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...Abstract: Since I became a mother, I have always wanted a job that would allow me to work at home. I have an associate in accounting and tried doing bookkeeping from home but that did not really work out. I did some research and found that being an insurance medical biller and coder is one of the best jobs to have for working at home. Top Medical Billers can earn over $40,000 a year either at home or in the office. “Employment of billing and posting clerks and machine operators is expected to grow by about 4 percent from 2006 to 2016. In 2006, billing and posting clerks and machine operators held about 542,000 jobs; 566,000 jobs are projected by 2016.” (medicalcareersguide, 2007) In choosing a new career path I did a lot of research on my options. The path to success always starts with the right attitude, education, training, networking, and experience. We want to inspire you by not only speaking about the medical billing and coding career but also by giving examples of real people who succeeded. Learn all there is to know about entering into this rewarding field, finding medical billing jobs, and succeeding in your chosen career. This website also answers many questions about starting your own medical billing business, either in a small office space, or from home. I decided upon medical billing and coding because it is a rapidly growing healthcare field and it sounds exciting. Learning about medical coding and medical billing is crucial before deciding whether one should pursue...
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... C) legal wrong against society which is punishable by fines. D) legal wrong against society which is punishable by imprisonment or death. Answer: B Question Status: Previous Edition 2) All of the following are examples of intentional torts EXCEPT A) negligence. B) trespass. C) slander. D) assault. Answer: A Question Status: Previous Edition 3) A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of A) general damages. B) comparative negligence. C) an intentional tort. D) strict liability. Answer: D Question Status: Revised 4) Failure to exercise the degree of care required by law to protect others from harm is A) premeditated liability. B) vicarious liability. C) punitive damages. D) negligence. Answer: D Question Status: Previous Edition 226 Rejda · Principles of Risk Management and Insurance, Tenth Edition 5) All of the following are elements of negligence EXCEPT A) the ability to pay damages. B) the failure to perform a legal duty to use reasonable care. C) damages or injuries to a claimant. D) proximate...
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...Talbot County Ernest B. Crofoot AFL/CIO Residence: Anne Arundel County Larry Ginsburg Service Employees International Union Residence: Baltimore County Jeffrey Lucht Aetna Health, Inc. Residence: Howard County Robert E. Moffit, Ph.D. Heritage Foundation Residence: Anne Arundel County Robert E. Nicolay Retired Business Owner Residence: Carroll County Debra H. Risher President and Owner Belair Engineering & Service Co., Inc. Residence: Anne Arundel County Constance Row Partner, Row Associates Residence: Harford County Stephen J. Salamon Heritage Financial Consultants, LLC Residence: Baltimore County Clifton Toulson, Jr. U.S. Small Business Administration Residence: Prince George’s County Marc E. Zanger President and CEO CBIZ Benefits and Insurance Services of Maryland, Inc. Residence: Allegany County STATE of MARYLAND STATE HEALTH CARE EXPENDITURES Experience from 2002 Released January 2004 Donald E. Wilson, M.D., MACP Chairman Acknowledgements This report required the assistance of many individuals and offices in state government, private industry, and federal government. In particular, the Commission wishes to note special contributions from the following individuals and organizations: Patricia Holcomb, Office of Planning, Development and Finance, Maryland Department of Health and Mental Hygiene (DHMH) and Babi Lamba, Center for Health Program Development and Management, University of Maryland-Baltimore County...
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...European health care to an American, and it probably conjures up a negative stereotype — high taxes, long waiting lines, rationed care. It's not that way in Germany. Very little tax money goes into the system. The lion's share comes, as in America, from premiums paid by workers and employers to insurance companies. German health benefits are very generous. And there's usually little or no wait to get elective surgery or diagnostic tests, such as MRIs. It's one of the world's best health care systems, visible in little ways that most Germans take for granted. Dental Care in Germany vs. United States Dental care in Germany is very similar to the dental care that we have in the United States. In Germany, costs for dental care is ranked amongst the highest in Europe, while public healthcare costs consume a large portion of their national budget (Going to the Dentist in Germany, 2012). The downside to this is that an increasing number of dental treatments are excluded from reimbursement by public health care plans. Also, in Germany there is a two-tier insurance program, which offers different levels of dental insurance coverage. The costs of your yearly dental health routine are covered by all standard dental health plans. This includes two annual check-ups, teeth cleanings, and basic fillings (Going to the Dentist in Germany, 2012). You may, however be held responsible to pay out-of-pocket for such services as extra teeth cleanings and expensive cosmetic procedures such as ceramic...
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...F Insurance Matrix Type of Insurance | Functions | Example of Company | Coverage Characteristics | Auto | Auto insurance covers losses and injuries that may happen to you and your property, as well as, those that you may inflict on others. In some insurance claims it also covers you in instances of uninsured drivers depending on which coverage you buy/carry. | State Farm, Progressive, AAA, Nationwide, Esurance, All State, Geico, Liberty Mutual, and countless others. | Auto insurance covers property damage as well as injury.Injury Part A- This part ensures that you are not liable for legal fees, costs for court, or defense. It also cover’s injuries and damages that may have been caused in the car of a car accident. Part B-This part pays for medical expenses needed for all parties involved.Part C-This covers you against drivers that don’t carry insurance. (Some states require part C. Also, they regulate who pays for injuries, but it is almost always the driver at fault.)Property DamagePart D- This part is optional. The two parts are collision coverage and comprehensive physical damage coverage. | Home | Home owner’s insurance covers: any damages to the building itself from nature, personal property on the premises or off in case of theft, or from yourself being liable for damages to other’s property. | State Farm, Liberty Mutual, Nationwide, All State...
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... Introduction Flood insurance is becoming increasingly popular here in the UK, as flooding is becoming more common in specific areas, given the climate change recently. There are many reasons for floods, such as river bursting its banks, an example being the houses near the Thames river being prone to flooding due to the likelihood that it could burst it banks after a period of heavy rainfall. Problems like this can occur up near Trent Road, Beeston as it is near the River Trent, so I am writing this report for Anna Yang so she can think about what factors to take in account when thinking about buying a house. Should Anna be worried about the risk of flooding on Trent Road, Beeston? According to the Environment Agency, (Environment Agency, 2014) Trent Road in Beeston is located in a Flood Zone 3 area, which means the yearly probability of the river flooding is 1 in 100, or greater than 1%. If Anna were to stay in the house for ten years, it would have a probability of flooding ranging from 9.6% to 28.5%. (Diacon, S. 2014) The probability is expressed as a range due to the fact that it would always be uncertain to some degree as the climate change in the UK changes so regularly, and also flood risk simulation model that the Environmental Agency use has some uncertainty too, as it too is dependent on the climate, and how often it rains, so they can warn people to take action or not. In comparison, insurance companies would also have information about the risk flooding on Trent...
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...you. 2. You may save by including a Saturday evening stay-over or by purchasing the ticket at least 14 days in advance. Ask which days of the week and times of the day have the lowest fare. 3. Even if you are using a travel agent, check airline and Internet travel sites, and look for special deals. If you call, always ask for the lowest fare to your destination. Car Rental 4. Since car rental rates can vary greatly, compare total price (including taxes and surcharge) and take advantage of any special offers and membership discounts. 5. Rental car companies offer various insurance and waiver options. Check with your automobile insurance agent and credit card company in advance to avoid duplicating any coverage you may already have. New Cars 6. You can save thousands of dollars over the lifetime of a car by selecting a model that combines a low purchase price with low depreciation, financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information. 7. Having selected a model and options you are interested in, you can save hundreds of dollars by comparison shopping. Get price quotes from several dealers (over the phone or Internet) and let each know you are...
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...2.1 Key factors in case study 2.1.1 Saving factors in the case As we know, Alexander is a forty-eight year-old CEO of Graphic Design Ltd. He draws a salary of £420,000 per annum. He and his wife Janet have a 14-year-old boy, 10-year-old girl and 3-year-old girl, named Adam, Sheila and Carina respectively. Janet is already 44 and works as her husband`s personal assistant with salary of £55,000 per annum. So the annual household income of his family is £475,000 totally. Adam and Sheila studied in a local private school. The couple will have to pay £3,000 per child per annum in school fee, what was more when Carina arrived her school age, and at that time she will probably be sent into the same school. 2.1.2 Mortgage factors in the case The Flynn’s live in a bungalow which is conservatively evaluated £1.25m in firm economic condition. They have £450,000 mortgage to pay in 14 years. They decided to build an extension which cost £300,000. They have taken out the over 20 year’s mortgage on an endowment basis. A substantial shortfall leads to policy operational problems. 2.1.3 Protection factors in the case As a Company Director and Chief Executive of a software company, Alexander is already 48 and close to his middle-age. Great work pressure may easily cause health problems. Janet is 44 and works as Alexander's personal assist. So this couple needs to protect health to deal with the pressure and workload. Their three children also need to protect health to prevent accident...
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...Real Estate Foreclosures » Why a Lot of People Prefer to Rent Than to Buy a House Why a Lot of People Prefer to Rent Than to Buy a House Posted on July 12, 2010 Filed Under Foreclosures | Leave a Comment People prefer to rent than to buy a house. The number of people that are very much concern about owning a home hasn’t doubled up until now, this is primarily because so many people are suffering from financial hardships. A lot of real estate owner these days will tell you that it isn’t the right time to buy a house because a lot of people are suffering foreclosure trauma. This is also the same reason why there are people who prefer to rent a house than to buy one too. In so many instances, it will be best if you will know some good advices because there are so many situations that just don’t go coherent lately because of the financial crisis going on. It is best for you to know some of the most reliable reasons why a lot of people prefer to rent than to buy a house. Here are some of them: Interest rate –a lot of people know that they cannot pay for the houses they will acquire primarily because their credit standing won’t allow them to do that too. Having a secured loan is also a decent thing to do these days. A lot of times, your mortgage broker cannot give you the right type of package you need because they are not available. In this case, you need to delay the purchases you will make to be able to make sure that your money will be worthy. Remember that...
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...from obtaining what should be rightfully theirs. For instance, the TSGLI insures that all veterans with a type of mental or physical disorder is covered with life insurance known as the SGLI program (U.S. Department of Veteran Affairs (2013) . Something that everyone seems to look past is the short term financial coverage (U.S. Department of Veteran Affairs (2013). Only having short term coverage can kill if not severely hurt a veteran’s life. Not only could the veteran run out of money trying to get better, but if someone is only covered for so long and is without work, he is liable to lose something he owns. Coming back from war, most veterans...
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...The Progressive insurance organization began business in 1937. The Progressive Corporation, an insurance holding company formed in 1965, currently has 54 subsidiaries and 1 mutual insurance company affiliate. These insurance subsidiaries and affiliate provide personal and commercial automobile insurance and other specialty property-casualty insurance and related services. Our property-casualty insurance products protect our customers against losses due to collision and physical damage to their motor vehicles and uninsured and underinsured bodily injury, and liability to others for personal injury or property damage arising out of the use of those vehicles. Our non-insurance subsidiaries generally support our insurance and investment operations. We operate our businesses throughout the United States and sell personal auto insurance in Australia. Organization Auto insurance differs greatly by community because legal requirements and decisions vary by state and because, among other factors, traffic, law enforcement, cultural attitudes, insurance agents, medical services, and auto repair services vary by community. To respond to these local differences, we are organized as follows: • Our Personal Lines products are comprised of insurance for personal autos and special lines products (e.g., motorcycles, ATVs, RVs, mobile homes, watercraft, snowmobiles, and similar items): • We currently write personal auto insurance in all 50 of the United States and...
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...Nursing Home Care in New York State by Vina Aileen Bonner HCA 621 Utica College Fixing medical care and health insurance in the United States has been a public policy concern for about a century. Presidents such as Theodore Roosevelt, Harry S. Truman, John F. Kennedy, Richard Nixon, Jimmy Carter and Bill Clinton focused on the National Health Reform, but only President Barack Obama achieved the health care reform. Health care costs are increasing while the access to health care is declining. The occupationally based health insurance system is greatly stressed. Medicare and Medicaid are consuming more of the federal budget. According to the White House’s budget for U.S. Department of Health and Human Services (HHS), President Obama’s proposal would save nearly $360 billion in Medicare and Medicaid over the next 10 years: $56 billion would come through Medicaid reforms. Medicare is a federal health insurance program providing health care benefits to all Americans age 65 and over. Medicare is a significant part of the reason the national debt is soaring out of control. It is an open-ended program for provided for millions of senior citizens and people with disabilities. Medicare is growing faster than Social Security and more expensive in the next 25 years. Nationally, health care experts believe that as much as third of all health care spending – about $800 billion in 2009 – goes to health care. Medicare accounts for more than one fifth of all personal...
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