Finance

Terrorists attacked the World Trade Center on September 11, 2001. The

Terrorists attacked the World Trade Center on September 11, 2001. The attack simultaneously created large losses for life insurers, property insurers, workers compensation insurers, health insurers, and liability insurers. What name is given to an event that simultaneously creates large losses in several lines of insurance? A) speculative loss B) clash loss C) retroactive loss […]

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Date: September 19th, 2020

Two buildings are located close together at a production facility. The

Two buildings are located close together at a production facility. The probability that either of these buildings will experience a fire loss is 4 percent. However, if one building has a fire, the probability that the second building will have a fire is 60 percent. What is the probability that both buildings will have a […]

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Date: September 19th, 2020

LMN Insurance Company is concerned about its exposure to hurricane los

LMN Insurance Company is concerned about its exposure to hurricane losses for property risks it insured on the Gulf Coast. LMN borrowed money from investors by issuing financial securities. LMN promised to repay the money it borrowed with interest if hurricane losses do not exceed a specified level. If hurricane losses exceed the specified level, […]

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Date: September 19th, 2020

Which of the following statements is (are) true with regard to probabi

Which of the following statements is (are) true with regard to probability analysis? I. If two events are independent, the occurrence of one event does not affect the occurrence of the second event. II. If two events are dependent, the occurrence of one event affects the occurrence of the second event. A) I only B) […]

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Date: September 19th, 2020

Jane is risk manager of ABC Manufacturing Company. She is trying to de

Jane is risk manager of ABC Manufacturing Company. She is trying to decide whether to self-insure her company’s workers compensation exposure or to purchase insurance. Jane would like to use regression analysis to predict the number of workers compensation claims that will occur next year. The number of claims will be the dependent variable in […]

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Date: September 19th, 2020