For each item, decide if it describes a moral hazard problem or an adverse selection problem. a. A person with a terminal illness buys several life insurance policies through the mail. (Click to select) b. A person drives carelessly because she has automobile insurance. (Click to select) c. A person who intends to torch his warehouse takes out a large fire insurance policy. (Click to select) d. A professional athlete who has a guaranteed contract fails to stay in shape during the off season. (Click to select) e. A person who anticipates having a large family takes a job with a firm that offers exceptional child care benefits. (Click to select) Adverse selection Moral hazard

Write a memo responding to the following five prompts: 1. In reaching out to the media, what are your goals? Who is your intended audience? And what message do you intend to deliver?   2. How will you use social media to amplify your message?   3. What type of media best matches your message (print/ radio/ TV; national/ state/ local)? What specific media outlets and reporters will you target?   4. In preparing your pitch, respond briefly to the following questions: A.“What makes this story of community interest?” B.“How would I tell it?” C.“Why is this newsworthy?” D.“Why should other people care?”

Example: Lemons Problem You are buying a used car and according the Blue Book the value of the car you want to buy is between $30,000 and $35,000. a. How much are you willing to pay for the car if you think the seller knows as much as you about the quality of the car? b. How much are you willing to pay for the car if you think the seller knows you do? about the car than @gmail.co

Robert decides to start working for the local ridesharing company. He has a large 12-passenger van and thinks he will be in big demand at the airport. He tells his personal car insurance company that he is driving for a ridesharing company, and he needs some additional insurance. He is denied additional coverage. Why? There is no such thing as ridesharing insurance. He lives in a state that doesn’t offer ridesharing insurance. The city he lives in is too small for him to qualify for ridesharing insurance. Many insurance companies will not insure high-occupancy vehicles under their ridesharing policies.

Many people in the property and liability insurance industry complain about the “automobile problem.” The “automobile problem” consists of a series of interrelated problems. What factors have combined to produce a problem in the automobile insurance area?

The XYZ company is currently evaluating its investment. If Mr. Dela Cruz, the chief operating officer conducted a survey and found that the employees want to put up a gym to make them health conscious, what will you advice Mr. Dela Cruz?  A. put up the gym regardless of their financial condition because it will make the workers happy B. put up the gym if the marginal benefit is found to be greater than the marginal cost C. do not put up the gym because it is just an added cost D. the gym should not be part of the investment decision of the firm E. putting up the gym will always be beneficial

"Clothes make the man.” a. What do clothes and grooming tell about a person? b. Can a person judge by his appearance?

Please give typed solution, don't use handwriting or notebook for solution. Todd is driving his SUV and Susan is a passenger. They are headingdowntown for dinner. Todd’s PAP policy has a Medical Payment limit of$10,000 per person. Susan’s PAP has a Medical Payment limit of $5,000 person. Todd is involved in an at-fault accident that results in Susan beinginjured and incurring $12,000 of medical expenses. How much in Medical Payments coverage would Todd’s PAP insurerpay? How much in Medical Payments coverage would Susan’s PAP insurerpay?

Which of the following is an example of moral hazard? Group of answer choices A. Reckless drivers are the ones most likely to buy automobile insurance. b. Retail stores located in high-crime areas tend to buy theft insurance more often than stores located in low-crime areas. C. Drivers who have many accidents prefer to buy cars with air bags. D. Employees recently covered by the company health plan start going to the doctor every time they get a cold. E. Company divisions try to improve profitability at each other's expense.

Explain the importance of information in gaining insights about the marketplace and customers.