23.E: Cases in Holistic Risk Management(Exercises)
- Page ID
- 34257
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- Refer to Table 23.3. Other than the fact that the policies are provided by different companies, what could account for the significant differences among premiums presented in the table?
- What is the purpose of the waiting period in LTD insurance? How does the Smith family make certain there are no gaps in coverage in the event of disability?
- Examine the insurance premiums allocation shown in Figure 23.2.1. Why do you think auto insurance has the highest insurance allocation and life insurance the lowest?
- Do you agree with the Smith family’s assessment of its insurance needs? Are there other relevant facts about the family that should be factored into the decision?
- How might accelerated benefits in a life insurance policy be triggered? What does this provide?
- Which of the hypothetical Galaxy Max, Inc., health plans do you personally find preferable? Explain your reasoning.
- In what way does use of a flexible spending account and premium conversion plan reduce health care costs to employees?
- How can employees continue to have life and health insurance coverage without providing new evidence of insurability in the event of termination from a group plan?
- What should employees consider when selecting among 401(k) investment options?
- What employee benefits of the hypothetical Galaxy Max, Inc., are unrealistic and impossible to find in today’s world?
- How does a reinstatement provision provide an additional layer of protection in an integrated risk program?
- What are the potential disadvantages of a finite risk program?
- Explain how to determine which types of coverage to include in a multiyear integrated risk program and the appropriate limits to select.
- It is said that traditionally uninsurable risks are insurable under finite risk programs. Explain why this is possible.
- Refer to the information in Part I of the LOCO Corporation
hypothetical case study and respond to the following:
- Draw a risk map graph (as described in "4: Evolving Risk Management - Fundamental Tools") and place your estimates of the risks faced by the company in the appropriate quadrant.
- For each risk, indicate what risk-handling method is suggested by your estimates.
- Refer to the actions taken in Part II of the LOCO Corporation
hypothetical case study and respond to the following:
- Briefly explain what a finite risk management program is.
- Why might a finite risk program be appropriate for LOCO Corporation?