💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!
Get the answer to your homework problem.
Try Numerade free for 7 days
Like
Report
What is an actuarially fair insurance policy?
Actuality fair insurance policy is a policy which takes the premium which is equal to the amount ofbenefit paid to the person i.e. in this policy insurance company neither makes any profit nor anyloss.
No Related Courses
Chapter 16
Information, Risk, and Insurance
How Markets Work
Markets and Welfare
The Economics of the Public Sector
01:32
What is an insurance premi…
02:55
Define deductibles, copaym…
01:29
What is an annuity?
01:11
00:10
02:11
00:23
00:58
04:17
What is an expansionary fi…
01:05
What is fiscal policy? Who…
04:48
To what sorts of customers…
00:30
What is a dividend?
03:48
Insurance Reimbursement An…
04:25
01:36
Payout on Insurance Polici…
01:17
In an insurance system, wo…
01:37
Use the following informat…
04:24
What is a Robertsonian tra…
02:27
What is an externality?
01:01
What is a mutual fund?
in an actuarially fair insurance policy. If you were to take all of the premiums that everyone paid, they would be exactly equal to all of the payments by the insurance company. So if everyone let's say across the country, paid perhaps, ah, $100 million let's say to a particular insurance company in premiums than the benefits paid out by that insurance company should be the exact same amount.
View More Answers From This Book
Find Another Textbook
What is an insurance premium?
Define deductibles, copayments, and coinsurance.
What is an expansionary fiscal policy? What is a contractionary fiscal polic…
What is fiscal policy? Who is responsible for fiscal policy?
To what sorts of customers would an insurance company offer a policy with a …
Insurance Reimbursement An insurance policy reimburses a loss up to a benefi…
Payout on Insurance Policies An insurance company has written 100 policies f…
In an insurance system, would you expect each person to receive in benefits …
Use the following information. An insurance company advertised the following…
What is a Robertsonian translocation?
01:42
What might some of the negatives of deregulation be?
02:45
Why should a financial investor care about diversification?
What can government do to encourage the development of new technology?
05:45
From a firm’s point of view, how is a bond similar to a bank loan? How are t…
01:16
How can a small special interest group win in a situation of majority voting…
00:34
How can high-income countries benefit from covering much of the cost of redu…
02:02
Make a case for why monopolistically competitive industries never reach long…
00:49
How can deductibles, copayments, and coinsurance reduce moral hazard?
01:23
If immigration is reduced, what is the impact on the wage for low-skilled la…
04:01
What is the difference between poverty and income inequality?
