Fabozzi金融市场与金融机构基础课后答案.docx

CHAPTER 6 INSURANCE COMPANIES TYPE OF INSURANCE COMPANIES In sura nee compa nies sell in sura nee policies for apremium . They have two sources of in come: un derwriti ng in come , and in vestme nt in come. Life In sura nee The life in sura nee compa ny pays the ben eficiary of the life in sura nee policy in the eve nt of the death of the in sured. Health In sura nee The health in sura nee compa ny pays the in sured all or a porti on of the medical treatme nt of the in sured. Un til the last decade, the major type of health in sura nee available was indemn ity in sura nee. Due to the lack of con stra in ts a nd incen tives for cost sav in gs, the medical service in sured by indemnity in sura nee became very expe nsive. In resp on se, various forms of man aged health care have bee n developed. In gen eral, these forms of man aged health care put eon stra ints on the choice of the provider by the in sured and on the types of service provided by the provider. Property and Casualty In sura nee Property and casualty (P&C) in sura nee compa nies in sure the risk of damage to various types of property. Liability In sura nee The risk insured against is litigation, or the risk of lawsuits against the insured due to actions by the in sured or others. This is typically a third-party claim. Disability In sura nee Disability in sura nee in sures aga inst the in ability of employed pers ons to earn an in come. Typically, “ own occ ” disability in sura nee is writte n for professi on als i-coJhiteDeeupatio ns, and “ any occ” for blue-collar workers. There are two types of policies regarding the sustainability of the policy. First, guaranteed renewable is a term where the issuer has to sustain the policy for a specified period of time, but can change the premium rates for the entire class. The other type is nonean cellable and guara nteed ren ewable whereby theissuer has no right to make any cha nges in any policy duri ng the specified period. Lon g-Term Care In sura nee Lon g-term