Discuss
Why are floods and earthquakes difficult to insure in a privately operated insurance system?
What is adverse selection? How do insurers try to prevent adverse selection?
Explain the statement that adverse selection causes subsidization.
. Explain the four major principles of risk classification. 10. What is meant by incentive value in a risk classifica- tion scheme?
Why is it difficult for insurers to satisfy the social acceptability of risk classification criteria?
Explain why the legal organization of an insurance system is important to the consumer.
Describe the differences between stock insurers, mutual insurers, and reciprocal exchanges.
Why are the dividends on mutual insurance company policies not subject to the federal income tax, while How does an advance premium mutual insurer differ from an assessment mutual
