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Assignment
1- Most consist of buyers and sellers. The chapter suggests that the insurance market has three participants. Who the third participants, and what is its role in the market?
2- Describe the important factors to consider when choosing an insurance company?
3- How does the pricing of an insurance policy for an insurer differ from a bologna manufacturer's pricing its product? Why does the difference in pricing problems require that insurance pricing be subject to regulation?
4- Describe the main methods for regulation the investment activities of insurers.
5- Describe one difference between life insurance and property insurance in the requirement for insurable interest.
6- Explain the advantages of the incontestable clause in life insurance from society's standpoint.
Case
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