Game Theory and Life Insurance

As a “comprehensive major medical insurance policy,” the Dumonts’ coverage includes basic health insurance for hospital, surgical, and physician expense needs, as well as major medical expense coverage. The latter is very important to extend the basic coverage to protect the Dumonts from the financial effects of a catastrophic illness or accident. The policy has a very adequate lifetime cap of $3,000,000 per insured. The Dumonts should continually analyze the health plans from both employers to determine which offers the best overall plan. But, the annual coinsurance, stop-loss amount, and family

Early in 1941, a result of World War II, Theodor Seuss Geisel began developing political cartoons for the liberal publication, PM Magazine. Being too old for the draft, Seuss aided the military by making animated training films and illustrated propaganda posters for the Department of Treasury and the War Production Board. This series of events, led Seuss to not write another children’s book for seven years. As a Result of wearing multiple hats, do we find that Seuss’ career as a political cartoonist effects the messages given in his children’s literature?

For example I immediately bought Disney, Apple, and, Amazon before anything else, due to the success I knew each of these companies have had in the past. After running out of companies I knew had stock on the exchange, I started doing research on stocks I might want to purchase. This was especially necessary for mutual funds, which prior to starting the stock market game I had very little to no knowledge about. I found that in the long run, the stocks that I had the most success with were stocks that I had had some previous exposure to. Amazon especially was a great success.

The insurance industry has long been applying game theory to evaluate whether or not individuals are insurable and determine how much premium to charge them based on their apparent needs. This interaction between the consumer and the insurance company can be characterized as a game because not only are they playing against one another but each party is waging on an outcome more beneficial to them. In a traditional life insurance, there are many variables to consider when utilizing game theory to form a strategy as there are investment components along with complex riders. Thus, in order to keep the game relatively simple, this paper will assume the insurance being considered is term life and use game

Cost-utility analysis is the best choice in assessing insurance companies to be certain that they are complying with new regulations or guidelines. Input would be measured in dollars and the output would be measured in the number of companies complying with enforced laws and the number of citizens receiving care. The fixed utility element of cost-effectiveness would not be effective because the input would increase over time. Furthermore, the fixed budget element wouldn’t be effective because this solution is focused on penalizing insurance companies that do not comply with regulations. Cost-benefit analysis would not be used because it requires money to be computed into the input and output, which is not needed in making sure companies

As someone who is passionate about issues of social justice; who enjoys engaging in a healthy debate; and whose life experiences have fostered an appreciation for legal protection, I am drawn to the academic study of law. Since graduating from my first degree, I have held a variety of jobs including some within the food service industry. It is in fact through my experience working in a field unrelated to law that has reinforced my interest in the study and practice of law. While employed as a waitress, I witnessed countless cases of employers unlawfully deducting workers' wages; ignoring workplace harassment; and refusing to acknowledge an employee's right to take breaks. Having personally submitted an employment-standards claim to the Ministry of Labour, I know how much time is involved in filing a claim against an employer.

evaluating the underwriters and selecting a syndicate, and decide to include some uncertainty to be

The test provides us with expected value of information which helps us to evaluate our decision with cases where the information is not clear. Furthermore, the uncertainty regarding the decision, despite coming at the cost of $50,000, is resolved before a particular choice of selecting the standard or robust choice is made. However, once the decision is made, the market will take its course of action. It is simply the fact that ISSI has a fair idea of the possible outcome. If ISSI does not carry out the test, it will only have the option to either install the standard system or the robust system. The dilemma in this decision is that either ISSI will install the standard system and earn a profit of $300,000 which has a probability of 90% or a loss of $200,000 if the system does not work which has a probability of 10%. On the other hand if the robust system is installed ISSI will

Have you ever fallen behind on your monthly premiums? Have your policies accidentally lapsed due to non-payment? In fact, there are many options available to prevent a policy from lapsing if a policy owner discontinues premium payment on a policy. Alternatively, they provide policyholders who choose to terminate cash-value insurance policies with several choices of using cash surrender value. The above features describe the basic function of Nonforfeiture options.

The goal, of my proposed changes to the ratemaking algorithm, is to transform Company X from a firm in deficit to one in surplus. Additionally we will seek to have an acceptable underwriting profit while still staying competitive. And furthermore, we will look to maintain a high retention percentage among insurance policies. Given these points, the best method, for achieving these goals, is to update our rating factors so that our algorithm is set to promote profitable customers while decreasing those that are not.

Insurance serves an intermediary role in the delivery of health care as it is in most cases pertinent to paying for a person’s care. Relating this fact to the medical model of health, a person gets diagnosed with a disease and needs to get treatment. Due to the extremely high costs of health care, insurance is necessary for people to pay for the care they need (Begay, Lecture, 9/12/17).

Decision concerning electrical transmission network expansion has become harder in the last two decades. As a matter of fact, the power sector has been decentralized and the electricity market is now a competitive market. Thus a transmission expansion plan cannot follow the traditional planning criteria anymore. As a result, new techniques are developed in order to solve the transmission expansion problem TEP.

In this day and age, it’s assumed that our information is unfiltered and uncut. This should hardly be a surprise in the internet era, with popularized search engines that provide unbiased information in a matter of seconds. To that end, society has numbed itself to biases found in media and tends to follow what is proclaimed to be true and ethical. This is particularly true in regard to print and televisual media. Due to society’s failure to question these media forms, it frequently becomes coaxed into converting its ideas to those made by the media. In other words, media outlets consistently have political leanings that manipulate our understanding of information, particularly in regards to the public’s political beliefs.

The goal of the ideal healthcare system is to make the benefits of being insured equal to the monetary cost of coverage for the individual. Doing so will lead to an increase in the population of insured individuals over time, thus appropriating the debt accrued by the uninsured; this debt will further decrease as more and more individuals choose to become insured, therefore tipping the balance in their favor. This in combination with the resultant lower cost of medical expenses and influx of insurance payments are the key to keeping costs low in the ideal healthcare system.

Professor Eric Maskin was born in New York City on 12 December, 1950. He spent his child and high school years in Alpine, New Jersey. Alpine was a very small town, so he has study his high school in the town of Tenafly. When he was at Tenafly high school he found Mathematics very interesting due to a great Calculus teacher named Francis Piersa. So he continued with Maths major at Harvard. Maskin happen to take some economics courses along with his degree in Mathematics. During his undergraduate studies he happened to attend Kenneth Arrow’s class on information economics, he said “Kenneth Arrow’s class was so inspiring that I decided to change direction. It seemed to me that economics combined the best of both worlds: the rigor of mathematics with the immediate relevance of a social science” (Maskin, 2013a). He continued at Harvard on his master’s and PhD in applied mathematics, but focused on economics. Maskin wrote his dissertation on mechanism design and social welfare on Arrow‟s direction (Maskin, 2008). In 2007, Eric Maskin was awarded Nobel Prize in economics along with Leonid Hurwicz and Roger Myerson for laying the fundamentals of mechanism design theory.