After studying this chapter you will be able to: Explain the types of life insurance; calculate life insurance premiums; explain and calculate cash value and other nonforfeiture options; explain and calculate premiums for fire insurance of buildings and their contents; calculate refunds when the insured and the insurance company cancel fire insurance; explain and calculate insurance loss when coinsurance is not met;...
Distance-based pricing can help achieve equity objectives. Since annual vehicle mileage
tends to increase with income, fixed-price insurance causes lower-income motorists to
subsidize the insurance costs of higher-income motorists within their rate class.
Distance-based insurance pricing provides overall savings to lower-income motorists,
and would allow some low-income households to own a vehicle for basic mobility that
they cannot currently afford.
Distance-based pricing lets motorists save money by reducing mileage, an option that is
Over the next decade, the two laws also will provide for about $900 billion in new subsidies, including a substantial expansion of Medicaid and new tax credits to offset the cost of health insurance premiums for low- and middle-income families and small businesses. In each state, exchanges will be established to facilitate the purchase of coverage and the delivery of the subsidies. Some companies whose workers receive subsidies for health insurance through the exchanges could be required to pay penalties.
Most crop insurance policies are either production-based or revenue-
based. For production-based policies, a farmer can receive a payment if
there is a production loss relative to the farmer’s historical production per
acre. Revenue-based policies protect against crop revenue loss resulting
from declines in production, price, or both.
Several figures in this primer show the cumulative percent change in private health
insurance or health insurance premiums (Figures 11, 15, and 20). These cumulative
increases may vary from figure to figure because different years are used, the data
sources differ, and what is being measured varies.
ARPA and the 2008 farm bill set premium subsidy rates, that is, the
percentage of the premium paid by the government. Premium subsidy
rates vary by the level of insurance coverage that the farmer chooses and
the geographic diversity of the crops insured. For most policies, the
statutory subsidy rates range from 38 percent to 80 percent. Table 1
shows the total costs of subsidies for all crop insurance premiums and
administrative expenses for 2000 through 2011.
This study investigates the feasibility, benefits and costs of implementing distance-based
motor vehicle insurance. It is based on a literature review, analysis of insurance claim
data, comparisons of different distance-based pricing options, and evaluation of
concerns that have been raised about distance-based pricing.
Vehicle insurance is a significant portion of total vehicle costs. A typical motorist spends
almost as much on insurance as on fuel. Insurance is generally considered a fixed cost
with respect to vehicle use.
Distance-based insurance reflects the principle that prices should be based on costs. It
gives consumers a new way to save money by returning to individual motorists the
insurance cost savings that result when they drive less. Motorists who continue their
current mileage would be no worse off on average then they are now (excepting any
additional transaction costs), while those who reduce their mileage save money.
Distance-based pricing can help achieve several public policy goals including actuarial
accuracy, equity, affordability, road safety, consumer savings and choice.
In 2014, annual premiums are projected to fall compared to what they would have been without
the Affordable Care Act. These savings could be as much as $2,300 for middle-income families
purchasing through Exchanges. A low-income family of four with an income of $33,525 could
save as much as $9,900 in premiums and $5,000 in cost sharing due to the extra help from new
tax credits and cost sharing assistance. Small businesses, on average, could save up to $350 per
family policy due to lower costs in the Exchanges and could get tax credits for up to 50 percent
Medical loss ratio likely to lead to rebates: This year, health insurers must either meet the new
minimum loss ratio requirements by spending at least 80 percent of premiums on care and
quality improvement or offer customers rebates in 2012. Already, 75 million Americans in plans
covered by this rule are benefiting from insurers’ efforts to lower administrative costs and
increase the value of their coverage. We estimate, in the small group market, one million
enrollees could receive rebates averaging $312 per enrollee.
As one of the key pillars of the financial services sector the insurance sector is a central
element of the trade and development matrix. As both an infrastructural and commercial
service, a well-functioning insurance sector plays a crucial role in economic development
not just at a macro economic level but also in terms of the activities of individuals and
The world insurance market is dominated by industrialized countries which in 2004
generated about 88 per cent of world life insurance premiums and accounted for 90 per
cent of the world non-life market.
Our stylized model generates several empirical hypotheses about the insurance offer decision. Firms
in industries where labor turnover rates are high do not tend to offer insurance. Premium rigidities will
be most pronounced in such industries. Firms not offering insurance will tend to have lower health-cost
variability and lower average expected health spending than ﬁrms offering insurance; for example, they
have higher proportions of younger workers or are in industries where workers tend to be healthy.
The fact that entrepreneurs may insulate workers’ earnings from shocks in the prod-
uct market has long been recognised as an important determinant of the dynamics
of wages. The rationale for such an insurance ultimately rests on the concept of
implicit labour contracts originated by Azariadis (1975), Baily (1974) and Gordon
(1974). A central empirical implication is that contract wages may entail implicit
payments of insurance premiums by workers in favourable states of nature and the
receipt of indemnities in unfavourable states....
Health insurers play a unique role as both sellers
of insurance and buyers of health care services.
These companies use their power as buyers
against the smaller medical providers while
cooperating with larger providers to increase
profits for both.22,23 With only a handful of
large insurers, physician practices often have no
choice but to accept the prices offered without
bargaining effectively. Larger providers, such
as academic medical centers, can use their size
and stature to negotiate rates.
The Ohio Department of Insurance has created this
guide to help you understand some of the basics
of health insurance .This guide is intended to help
individuals, families, self-employed people and small
business owners evaluate their options .
If you have health coverage, try to keep it .Unless
the policy owner (you or your employer) stops
paying premiums, the health plan cannot cancel
your coverage — even if you get sick .The law allows
you to keep coverage through life-changing events
(divorce, changing jobs, job loss, etc .
Our new insight is on the interaction between relative labor turnover dynamics and lack of insurers’
premium ﬂexibility. A related possibility is that high labor turnover may be preferred by some
employers, especially small ﬁrms that employ homogenous workers with low job-speciﬁc human capital.
Workers tolerant of high turnover tend to be younger and healthier. By not offering health insurance,
despite the tax advantage, these ﬁrms deter older and less healthy workers.
It was during the Depression that hospitals band-
ed together to offer prepaid coverage to citizens.
Prepaid hospital coverage was a way for hospitals to
avoid the financial failure that befell the banking
industry. The approach worked so well that doctors
followed suit a few years later and Blue Cross Blue
Shield organizations were born. Little did anyone
know that the seeds for runaway costs eighty years
later had been planted.
Prepaid, employer-provided insurance quickly
dominated the health care landscape.
Despite the large social benefits from PAYD, there are currently several barriers to its
widespread adoption, including the cost to monitor miles traveled and some state insur-
ance regulations. In order to facilitate the spread of PAYD, we propose a three-part strat-
egy. First, states should pass legislation permitting mileage-based insurance premiums.
Second, the federal government should increase the funding available to PAYD pilot pro-
grams by $15 million over five years.
Rising health premiums are exacerbating income
inequality and making coverage too costly for
many Americans. The Kaiser Family Foundation
found that employer-sponsored health
insurance premiums have more than doubled in
the last nine years, a rate four times faster than
wage increases.38 A study by McKinsey Global
Institute of widening income gaps among U.S.
The programming language Python links the database to the “front-end” (main interface) of the
Digital layouts and comps begin to set the visual tone and the aesthetics of an interface,
but when the end product is intended for web use, there is no substitute for transferring the
design into an Integrated Development Environment (IDE) and reproducing the design with
recreated in Aptana Studio, the IDE application used to design and build the GDHit interface.