What are some real-life examples of moral hazard?

Examples include a homeowner neglecting to install a security system after getting home insurance, a bank taking excessive financial risks knowing the government might bail them out, or a patient overusing healthcare services because insurance covers most of the expenses.

How do actuaries use statistical modeling?

Actuaries use statistical modeling to analyze past data, identify trends, and create predictive models that estimate financial risks, insurance claims, and future liabilities for companies and clients.

What are the FCA’s rules on insurance product transparency?

The FCA requires insurers to provide clear, accurate, and complete policy details, including coverage limits, exclusions, and renewal terms.

What are the types of Marine Hull Insurance?

The main types include "All Risks" Hull Insurance, which covers most risks, and "Named Perils" Insurance, which only covers specific risks explicitly mentioned in the policy.

What does Medicare Part A cover?

Medicare Part A covers hospital stays, skilled nursing facility care, hospice care, and limited home healthcare services, but does not cover long-term custodial care.

Can an insurance company increase its RBC?

Yes, an insurance company can increase its RBC by raising additional capital, reducing its risk exposure, or improving its asset quality.

Is damage caused by hitting an animal covered by comprehensive insurance?

Yes, if your vehicle is damaged by hitting an animal, comprehensive coverage generally provides protection, as it falls under "other than collision" incidents, unless excluded.

What is the CPCU Society?

The CPCU Society is a professional association that supports CPCU designees through networking events, industry resources, career development, and continuing education programs.