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Case Study on September 11

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Submitted By jcmarinq
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Pages 4
Juan Marín
Insurance and Risk Management
Professor Valladares
Monday, August 27th, 2012
Case Study on September 11 1. What was the immediate impact of the horrific events of the September 11 on the insurance markets?
The heart of America was struck hard. New York, the capital of the world, the capital of global trade and commerce; the market indeed went down hard and fast especially because it was an already troubled market. As for insurance, the effect was the following…“rate hikes in every line of insurance, lower coverage limits, elimination of terrorism coverage, and tightness in the reinsurance markets. Reinsurers experienced their greatest losses ever.”

2. Why is the federal government involved in providing terrorism coverage?
George Bush signed a terrorism bill in 2002 from the federal government because after the tragic event of 9/11, insurance companies eliminated insurance coverage. The plan behind President Bush was to maintain the economic activity even though the insurance industry was no longer able to provide catastrophic coverage.

3. Why do estimate of liability losses from September 11 have such a large range?
Timing was the reason behind the wide range of liability on September 11. It all depended if the liabilities were reported at the moment the claim was accepted or at the moment the claims were paid off.

4. What are the main benefits under the Social Security?
A mandatory program of retirement plan and it also includes disability benefits, survivor’s benefits; and greatest of them all, Medicare.

5. What are the main benefits under the worker’s compensation program?

Medical coverage, disability income, rehabilitation, and survivor’s benefits, and death benefits for the immediate relatives as well. These benefits only apply if the incident occurred at the work.

6. Why can a worker get group insurance,

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