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Bus174-EVERYTHING!!!

Bus174-EVERYTHING!!! - IRIS Ratios Overall Ratios 1 Gross...

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IRIS Ratios Overall Ratios 1. Gross premiums written / Policyholders' Surplus < 900% 2. Net Premiums Written / Policyholders' Surplus <300oh J. -33% < ( Net premiums written 1 - Net premiums written t-r) / Net premiums written t-r <33Yo 4. ((Reinsurance commission rate) x (Unearned premiums on Ceded Reinsurance)) / Policyholders' Surplus < 15% Profitability Ratios 5. 2- year loss ratio + 2-year expense ratio - 2-year investment income ratio < 100% 5. 4.5% < Net investment income / .5 (cash * invested assets)1 + .5(cash * invested assets)1-1 < IIYI 7. -10oA < Adj. P/S , - Adj. P/S t-r)/ Adjusted Policyholders' Surplus 1-1 < 50o t-rf't rf 6(,rlVlf Liquidity Ratios t. Liabilities / (prerniums bookeC and Ceferred +Cash * Invested Assets - Invcstmcnts in Affiliates - (Real estate - 5%Liabilities)) <I05oh 9. Agents' Balances / Policyholders' Surplus !40%o Reserve Ratios 10, Incurred Losses t- Incurred Losses t-l /Policyholders' Surplus t 90oh 11. Incurred Losses t-z -Incurred Losses 1-3 / Policyholders' Surplus fi <20oA 12. (I.{et premiums earned(reserves/ premiums)- stated reserves)/ Policyholders' Surplus <25o/o
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',1 0 Risk Management and Insurance Quiz November 19,2OO9 On August 'J,5,2009, fohn Mackey, founder and CEO of Whole Foods, wrote an opinion piece for the Wall Street fournal. He outlined the Whole Foods alternative to the proposed health care bills before Congress. Explain which weakness of current health care markets each of the characteristics of the Whole Foods plan would address and why. Whole Foods Characteristic Weakness Addressed in Health Care Markets Why would the proposed change be effective? Allow the creation of high deductible health plans (GnP( r*w'r'('iTT\v€ nvvft-xur*) vco(ZYlr) Fo. I-\t€ Repeal government mandates regarding what medical procedures must be covered ( a{.tfoh4 (t ft\*tt 1D .4'{i tt ) Covfi*Png %r-rr- {W fht^6 fuL 6't&*1u.-te hJo MFIITA( -t}t€ S"fu t'tn*.., litrf, Autgr-,! thg l"ua f Nuf BE Ait:vSW> ftJ r) E\PA)bl LtvtiuS O? Equalize tax laws for employer provided and individual health plans r2oMorL\ €'Rvrt'.tt5\ tlt rt PPor".lp6s WOVLT t-rt++l 1'-',r tt{ c,t ! f:*-, t't. {t-> p ! h._: pth( Li a-a:ufi F{ I \+si Make costs of medical procedures transparent
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'ftv1o BUS 174 Quiz I September 1,2009 A. Briefly discuss three characteristics of pwe risk that distinguish it fiom speculative 2) gffiR, n)rL w ?v?v zu\? I<c|ee rocel N0 Oml tN arr-\y furzrv-r 3) If HmrS AtJ 4?e?4 g?&OttxtO SOyhP.,Ju1p,T V?AptWeWl h)l) o k WNAeOt2 . SWt-vLr41v" LJ .n--rtrE et NWVav cN}rl eruf oF fuuFc-?=- ? ul.Fe B.Gir,eoneexampleofapureriskanconeexarnplecfaspeculativerisk,^",}|ffirmR, student in this class. Pure- NUf goNO {t gtlKs ffisT(c r)NWr )l <
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Risk Management and Insurance Quiz 6 1. An insurer sells a large number of folicies to people with the following loss distribution: Loss Probabilitu s300.000 .01 200.000 .02 100.000 .03 0 .94 The insurer has a fair profit loading of $250 when the policy is sold, incurs $100 to process the policy at the beginning of the policy and expects to incur $250 in costs to settle claims.
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