The Mathematics of Money

522 Insurance and Risk Management “It’s a kind of spiritual snobbery that makes people think they can be happy without money.” — ...

Copyright © 2008, The McGraw-Hill Companies, Inc. this would come at the risk making customers sick or facing a very bad health ...

524 Chapter 13 Insurance and Risk Management earns a profit, it may pay some of that profit to its policyholders as a dividend. ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Policy Type What It Covers Disability Provides fi nancial benefi ts if you bec ...

526 Chapter 13 Insurance and Risk Management Now suppose you flip the coin 10 times. All heads or all tails is still within the ...

Copyright © 2008, The McGraw-Hill Companies, Inc. the claims per policy to work out to be (just as the greater the number of coi ...

528 Chapter 13 Insurance and Risk Management good credit ratings are less likely to have accidents than people who don’t). Even ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Example 13.1.2 Using the tables above, determine the semiannual rate for a pol ...

530 Chapter 13 Insurance and Risk Management but no insurer will offer a policy that will provide unlimited coverage. Liability ...

Copyright © 2008, The McGraw-Hill Companies, Inc. is in effect shared by the insurer and the insured. A policy in which the insu ...

532 Chapter 13 Insurance and Risk Management simply listing different rates for difference coverage levels, or by providing mult ...

Copyright © 2008, The McGraw-Hill Companies, Inc. A. Pure Premium and the Law of Large Numbers An insurance policy will pay a l ...

534 Chapter 13 Insurance and Risk Management Calculate the semiannual premium for a 28-year-old unmarried woman who lives in Re ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Lana has comprehensive coverage on her car, which is stolen. The car’s value ...

Suppose that your company’s offi ces and their contents are worth $1,400,000. You carry a $1,200,000 fi re insurance policy wit ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Tracey is a 28-year-old unmarried man living in Region A. He commutes 38 mile ...

538 Chapter 13 Insurance and Risk Management Health insurance can be purchased as an individual policy by an individual to cover ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Example 13.2.1 Mary has a “deductible and coinsurance” health insurance policy ...

540 Chapter 13 Insurance and Risk Management $350 of the overall deductible, leaving just $500  $350
$150 to satisfy overall. ...

Copyright © 2008, The McGraw-Hill Companies, Inc. problems are severe, and thus conditions that might have been easily and inexp ...