Medical exam required by insurance company, why? - Info asymmetry exists btw investor (customer investing in policy) and company. If no exam was done, the insurance company would offer the policy at an average price and healthy “good” customers would not buy the policy. Only lemons would purchase the policy and this result is adverse selection. Adverse selection leads to market failure because all the good customers are pushed out of the market and eventually the insurance companies would stop
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include the name of the agent (s), laboratory’s biosafety level, supervisor’s name (or other responsible personnel), telephone number(s), and required procedures for entering and exiting the laboratory. Personal Protective Equipment Once a biological hazard has been identified, the supervisor and employee must agree on the appropriate personal protective equipment (PPE) to be worn as the primary barrier of protection. PPE may include, but is not limited to face protection, lab coats and gowns, respirators
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"There is nothing natural about natural disasters". To call a disaster ‘natural’, means that it has occurred completely independent of the influence of humans. The damage caused by Hurricane Katrina, cannot solely be held accountable by a force of nature, however destructive. Human factors have had an equally damaging effect on the affected areas. It is clear to anyone studying natural disasters that, the difference between who lives and who dies depends largely if not completely on which side of
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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
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Name: Unit name: Institution: Date: One and the most obvious reason that makes people support the prevention of diseases is because the illness that can be prevented by giving a vaccine has not gone away. The causes of these illnesses whether viruses or bacteria still exist and can be transmitted to other people who are not protected against the illness. Research enhances the prevention of illnesses by the use of a vaccine makes one healthy as recommended
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About Financial Structure Throughout the World •Transaction Costs •Asymmetric Information: Adverse Selection and Moral Hazard Copyright ©2015 Pearson Education, Inc. All rights reserved. 7-4 Chapter Preview (cont.) • The Lemons Problem: How Adverse Selection Influences Financial Structure • How Moral Hazard Affects the Choice Between Debt and Equity Contracts • How Moral Hazard Influences Financial Structure in Debt Markets • Conflicts of Interest Copyright ©2015 Pearson Education, Inc. All rights
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financial systems rules. Financial regulation within a system that clearly had ulterior motives and lacked market discipline is inevitable. Without clear transparency of what and how borrowers are investing individuals savings will surely lead to moral hazard and conflicting interests. With Dodd Frank hopefully some of this asymmetric information will be largely more apparent to an inspecting investor. This Act aims to promote the financial stability of the United States financial system by implementing
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Principal-agent problems arise through the misalignment of interests between individuals or groups within an organisation. They can occur in various parts of an organisational structure, for instance in Labour; between an employer and an employee, Franchises; the franchisor and franchisee, Regulation; the regulator and the regulated company through to Investors; between the Shareholders and company Executives (Fingleton, J. 2012) The strength and alignment of these relationships are vital for the
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The HAZOP (Hazard and Operability) Method Introduction The HAZOP Concept The HAZOP process is based on the principle that a team approach to hazard analysis will identify more problems than when individuals working separately combine results. The HAZOP team is made up of individuals with varying backgrounds and expertise. The expertise is brought together during HAZOP sessions and through a collective brainstorming effort that stimulates creativity and new ideas, a thorough review of the process
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differences between moral hazard,morale hazard and physical hazard In short, Moral hazard is a hazard dealing with the difference between right and wrong while a moral hazards is a hazard dealing with people's attitudes. It also refer to the characters of individuals related to the property ( eg: the owners) that can increase the chance of loss. example : conditions resulting from a weakness of human character (when someone should know the difference between right and wrong), such as embezzlement
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