Podcast
Questions and Answers
What is the main issue that can arise due to information asymmetry in insurance transactions?
What is the main issue that can arise due to information asymmetry in insurance transactions?
- Moral hazard
- Deductible clause
- Increased premium
- Adverse selection (correct)
Which situation best describes moral hazard in insurance?
Which situation best describes moral hazard in insurance?
- Increased premium charged for risky actions.
- Medical examination requirement before insurance purchase.
- Excessive risk-taking or reckless behavior by one party after the transaction. (correct)
- One party possesses more information than the other before the transaction.
What is a common solution to the problem of adverse selection in insurance?
What is a common solution to the problem of adverse selection in insurance?
- Deductible clause
- Other information provision
- Increased premium
- Medical examination (correct)
In an insurance context, what does RBC2 stand for?
In an insurance context, what does RBC2 stand for?
Which ratio is calculated by adding underwriting expenses and claims expenses then dividing by net earned premiums?
Which ratio is calculated by adding underwriting expenses and claims expenses then dividing by net earned premiums?
What does an insured individual engaging in reckless driving behavior after purchasing vehicle insurance represent?
What does an insured individual engaging in reckless driving behavior after purchasing vehicle insurance represent?
What is the minimum capital requirement for insurance companies in 2022 according to the text?
What is the minimum capital requirement for insurance companies in 2022 according to the text?
What type of companies fall under the regulation of the Insurance Commission (IC) as per the text?
What type of companies fall under the regulation of the Insurance Commission (IC) as per the text?
What is the RBC Ratio Requirement according to the text?
What is the RBC Ratio Requirement according to the text?
What is the Paid-up capital required for 'New Business' as mentioned in the text?
What is the Paid-up capital required for 'New Business' as mentioned in the text?
Which organization's requirement is at least P500,000,000 for its minimum capital according to the text?
Which organization's requirement is at least P500,000,000 for its minimum capital according to the text?
What is the main difference between Capital Ratio and RBC2 Ratio?
What is the main difference between Capital Ratio and RBC2 Ratio?
How is the Expense Ratio calculated in insurance financial statement analysis?
How is the Expense Ratio calculated in insurance financial statement analysis?
What does a Loss Ratio of 102.63% indicate in insurance financial analysis?
What does a Loss Ratio of 102.63% indicate in insurance financial analysis?
What does a Combined Operating Ratio of 139.47% suggest about an insurance company's performance?
What does a Combined Operating Ratio of 139.47% suggest about an insurance company's performance?
How does Insurance Margin differ from Expense Ratio, Loss Ratio, and Combined Operating Ratio in insurance financial analysis?
How does Insurance Margin differ from Expense Ratio, Loss Ratio, and Combined Operating Ratio in insurance financial analysis?
Which ratio is most crucial for assessing an insurance company’s underwriting effectiveness?
Which ratio is most crucial for assessing an insurance company’s underwriting effectiveness?
What does the Expense Ratio measure in insurance financial statement analysis?
What does the Expense Ratio measure in insurance financial statement analysis?
In insurance financial analysis, what does a Loss Ratio of 36.84% indicate?
In insurance financial analysis, what does a Loss Ratio of 36.84% indicate?
What aspect of an insurance company's performance does the Combined Operating Ratio primarily assess?
What aspect of an insurance company's performance does the Combined Operating Ratio primarily assess?
If an insurance company has an Insurance Margin of 102.63%, what does this suggest about its financial situation?
If an insurance company has an Insurance Margin of 102.63%, what does this suggest about its financial situation?
When calculating the Loss Ratio in insurance financial statement analysis, what is considered a key component?
When calculating the Loss Ratio in insurance financial statement analysis, what is considered a key component?
How does the Expense Ratio differ from the Combined Operating Ratio in insurance financial analysis?
How does the Expense Ratio differ from the Combined Operating Ratio in insurance financial analysis?
What is a common outcome of information asymmetry in insurance transactions?
What is a common outcome of information asymmetry in insurance transactions?
Which situation best exemplifies moral hazard in insurance?
Which situation best exemplifies moral hazard in insurance?
What is a common solution to moral hazard in insurance?
What is a common solution to moral hazard in insurance?
How is the Expense Ratio typically calculated in insurance financial statement analysis?
How is the Expense Ratio typically calculated in insurance financial statement analysis?
What does an underwriting effectiveness ratio focus on in insurance financial analysis?
What does an underwriting effectiveness ratio focus on in insurance financial analysis?
Which ratio combines underwriting expenses and claims expenses then divides them by net earned premiums?
Which ratio combines underwriting expenses and claims expenses then divides them by net earned premiums?
What falls under the regulation of the Insurance Commission (IC) according to the text?
What falls under the regulation of the Insurance Commission (IC) according to the text?
What is the minimum Paid-up capital required for 'Microinsurance' as per the text?
What is the minimum Paid-up capital required for 'Microinsurance' as per the text?
What does a Risk-based capital (RBC) Ratio of 130% suggest about an insurance company's financial standing?
What does a Risk-based capital (RBC) Ratio of 130% suggest about an insurance company's financial standing?
What is the new minimum Paid-up capital requirement for 'New Business' as mentioned in the text?
What is the new minimum Paid-up capital requirement for 'New Business' as mentioned in the text?
What is the purpose of the Risk-based capital (RBC) Requirement in insurance regulation?
What is the purpose of the Risk-based capital (RBC) Requirement in insurance regulation?
What is the purpose of the Combined Operating Ratio in insurance financial analysis?
What is the purpose of the Combined Operating Ratio in insurance financial analysis?
In insurance financial statement analysis, what does a Loss Ratio of 102.63% indicate?
In insurance financial statement analysis, what does a Loss Ratio of 102.63% indicate?
How is the Expense Ratio calculated in insurance financial statement analysis?
How is the Expense Ratio calculated in insurance financial statement analysis?
What does an Insurance Margin of 139.47% suggest about an insurance company's performance?
What does an Insurance Margin of 139.47% suggest about an insurance company's performance?
Which situation best exemplifies moral hazard in insurance?
Which situation best exemplifies moral hazard in insurance?
What aspect of an insurance company's performance does the Loss Ratio primarily assess?
What aspect of an insurance company's performance does the Loss Ratio primarily assess?
What is the primary difference between adverse selection and moral hazard in insurance?
What is the primary difference between adverse selection and moral hazard in insurance?
How can insurance companies address adverse selection in insurance transactions?
How can insurance companies address adverse selection in insurance transactions?
What is the purpose of a deductible clause in insurance policies?
What is the purpose of a deductible clause in insurance policies?
In insurance financial statement analysis, what does the Combined Operating Ratio assess?
In insurance financial statement analysis, what does the Combined Operating Ratio assess?
What is the main consequence of information asymmetry in insurance transactions?
What is the main consequence of information asymmetry in insurance transactions?
How does a Loss Ratio differ from an Expense Ratio in insurance financial statement analysis?
How does a Loss Ratio differ from an Expense Ratio in insurance financial statement analysis?
What is the purpose of the Risk-based capital (RBC) Requirement in insurance regulation?
What is the purpose of the Risk-based capital (RBC) Requirement in insurance regulation?
What does a Loss Ratio of 55% suggest about an insurance company in financial analysis?
What does a Loss Ratio of 55% suggest about an insurance company in financial analysis?
What aspect of an insurance company's performance does the Insurance Margin primarily reflect?
What aspect of an insurance company's performance does the Insurance Margin primarily reflect?
In the context of insurance regulation, what does a Capital RBC2 Ratio below 100% indicate?
In the context of insurance regulation, what does a Capital RBC2 Ratio below 100% indicate?
How does the minimum capital requirement for Microinsurance companies differ from that of New Business as per the text?
How does the minimum capital requirement for Microinsurance companies differ from that of New Business as per the text?
In insurance transactions, adverse selection occurs after the transaction has taken place.
In insurance transactions, adverse selection occurs after the transaction has taken place.
The Deductible clause is a common solution to moral hazard in insurance.
The Deductible clause is a common solution to moral hazard in insurance.
The Expense Ratio in insurance financial analysis includes underwriting expenses and claims expenses divided by net earned premiums.
The Expense Ratio in insurance financial analysis includes underwriting expenses and claims expenses divided by net earned premiums.
RBC2 stands for Risk-Based Capital 2 in insurance financial statement analysis.
RBC2 stands for Risk-Based Capital 2 in insurance financial statement analysis.
Insurance Margin reflects the underwriting effectiveness of an insurance company in financial analysis.
Insurance Margin reflects the underwriting effectiveness of an insurance company in financial analysis.
A Loss Ratio of 55% indicates that an insurance company is operating at a loss in financial analysis.
A Loss Ratio of 55% indicates that an insurance company is operating at a loss in financial analysis.
The RBC2 Ratio is a simpler version of the Capital Ratio in insurance financial statement analysis.
The RBC2 Ratio is a simpler version of the Capital Ratio in insurance financial statement analysis.
The Net Earned Premium (NEP) is calculated by deducting Reinsurance Expense from the Gross Written Premium (GWP).
The Net Earned Premium (NEP) is calculated by deducting Reinsurance Expense from the Gross Written Premium (GWP).
An Expense Ratio of 139.47% in insurance financial analysis indicates high efficiency in managing expenses.
An Expense Ratio of 139.47% in insurance financial analysis indicates high efficiency in managing expenses.
A Loss Ratio of 102.63% suggests that claims expenses exceed the net earned premium in insurance financial analysis.
A Loss Ratio of 102.63% suggests that claims expenses exceed the net earned premium in insurance financial analysis.
A Combined Operating Ratio of 36.84% in insurance financial analysis indicates high profitability for the insurance company.
A Combined Operating Ratio of 36.84% in insurance financial analysis indicates high profitability for the insurance company.
The Insurance Margin is calculated by combining the Expense Ratio and the Loss Ratio.
The Insurance Margin is calculated by combining the Expense Ratio and the Loss Ratio.
The Insurance Commission (IC) falls under the Department of Finance (DOF).
The Insurance Commission (IC) falls under the Department of Finance (DOF).
The minimum capital requirement for insurance companies in 2022 is P1,200,000,000.
The minimum capital requirement for insurance companies in 2022 is P1,200,000,000.
Microinsurance companies are required to have a minimum paid-up capital of at least P600,000,000.
Microinsurance companies are required to have a minimum paid-up capital of at least P600,000,000.
The RBC2 Ratio Requirement is that the RBC2 Ratio should be less than 100%.
The RBC2 Ratio Requirement is that the RBC2 Ratio should be less than 100%.
Local Corporations or Foreign branches do not fall under the regulation of the Insurance Commission (IC).
Local Corporations or Foreign branches do not fall under the regulation of the Insurance Commission (IC).
An individual who drives carelessly after purchasing vehicle insurance is an example of moral hazard in insurance transactions.
An individual who drives carelessly after purchasing vehicle insurance is an example of moral hazard in insurance transactions.
Adverse selection occurs when undesirable results arise due to asymmetric information after the transaction has taken place.
Adverse selection occurs when undesirable results arise due to asymmetric information after the transaction has taken place.
The Risk-based capital (RBC) Ratio indicates the financial standing of an insurance company, with a higher ratio suggesting a stronger financial position.
The Risk-based capital (RBC) Ratio indicates the financial standing of an insurance company, with a higher ratio suggesting a stronger financial position.
Insurance Margin is calculated by combining Underwriting Expenses and Claims Expenses and dividing them by Net Earned Premium.
Insurance Margin is calculated by combining Underwriting Expenses and Claims Expenses and dividing them by Net Earned Premium.
The Net Earned Premium is calculated by deducting Reinsurance Expense from the Gross written premium.
The Net Earned Premium is calculated by deducting Reinsurance Expense from the Gross written premium.
The Deductible Clause is a common solution to addressing adverse selection in insurance transactions.
The Deductible Clause is a common solution to addressing adverse selection in insurance transactions.
A Loss Ratio of 102.63% in insurance financial statement analysis indicates high profitability for the insurance company.
A Loss Ratio of 102.63% in insurance financial statement analysis indicates high profitability for the insurance company.
Expense Ratio measures the efficiency of managing expenses in insurance financial statement analysis.
Expense Ratio measures the efficiency of managing expenses in insurance financial statement analysis.
In insurance financial statement analysis, a Combined Operating Ratio of 139.47% suggests efficient management of underwriting and claims expenses.
In insurance financial statement analysis, a Combined Operating Ratio of 139.47% suggests efficient management of underwriting and claims expenses.
The Insurance Margin is calculated by dividing the Underwriting Expense and Claim Expense by the Net Earned Premium.
The Insurance Margin is calculated by dividing the Underwriting Expense and Claim Expense by the Net Earned Premium.
An Expense Ratio of 36.84% in insurance financial statement analysis indicates high efficiency in managing expenses.
An Expense Ratio of 36.84% in insurance financial statement analysis indicates high efficiency in managing expenses.
The Capital Ratio is less complex than the RBC2 Ratio in insurance financial statement analysis.
The Capital Ratio is less complex than the RBC2 Ratio in insurance financial statement analysis.
The Risk-Based Capital (RBC) Requirement is optional for insurance companies to comply with.
The Risk-Based Capital (RBC) Requirement is optional for insurance companies to comply with.
The Insurance Commission (IC) regulates only Health maintenance organizations and Mutual Benefit Associations.
The Insurance Commission (IC) regulates only Health maintenance organizations and Mutual Benefit Associations.
The minimum Paid-up capital required for 'New Business' is P900,000,000 according to the text.
The minimum Paid-up capital required for 'New Business' is P900,000,000 according to the text.
The RBC2 Ratio Requirement states that T2 Capital should be less than 50% of T1 Capital.
The RBC2 Ratio Requirement states that T2 Capital should be less than 50% of T1 Capital.
Microinsurance companies are required to have a minimum paid-up capital of at least P400,000,000.
Microinsurance companies are required to have a minimum paid-up capital of at least P400,000,000.
The premium of an insurance policy is determined based on the insured's creditworthiness.
The premium of an insurance policy is determined based on the insured's creditworthiness.
Policy limit is the minimum amount that an insurer will pay under a policy for a covered loss.
Policy limit is the minimum amount that an insurer will pay under a policy for a covered loss.
Higher policy limits often come with lower premiums in insurance policies.
Higher policy limits often come with lower premiums in insurance policies.
The three critical components of most insurance policies are deductible, premium, and coverage limit.
The three critical components of most insurance policies are deductible, premium, and coverage limit.
Insurance companies regulate Health Maintenance Organizations and Insurance Margin Associations.
Insurance companies regulate Health Maintenance Organizations and Insurance Margin Associations.
In insurance financial analysis, a Combined Operating Ratio below 100% suggests high efficiency in managing underwriting and claims expenses.
In insurance financial analysis, a Combined Operating Ratio below 100% suggests high efficiency in managing underwriting and claims expenses.
Health insurance policies with lower deductibles tend to have lower annual premiums compared to policies with higher deductibles.
Health insurance policies with lower deductibles tend to have lower annual premiums compared to policies with higher deductibles.
Home insurance is not required by mortgage companies when financing a residential real estate transaction.
Home insurance is not required by mortgage companies when financing a residential real estate transaction.
Auto insurance is unnecessary when purchasing or leasing a car.
Auto insurance is unnecessary when purchasing or leasing a car.
Deductibles are always applied per policy, not per claim, in insurance policies.
Deductibles are always applied per policy, not per claim, in insurance policies.
A policyholder is not required to pay any deductible out of pocket before the insurer pays a claim.
A policyholder is not required to pay any deductible out of pocket before the insurer pays a claim.
High deductible policies are typically less expensive due to the increased number of small claims resulting from the lower out-of-pocket expense.
High deductible policies are typically less expensive due to the increased number of small claims resulting from the lower out-of-pocket expense.
Insurance is a contract where an individual pays an insurance company for financial reimbursement in case of losses.
Insurance is a contract where an individual pays an insurance company for financial reimbursement in case of losses.
Insurance policies are not used to hedge against the risk of financial losses.
Insurance policies are not used to hedge against the risk of financial losses.
The deductible, policy limit, and premium are not core components of most insurance policies.
The deductible, policy limit, and premium are not core components of most insurance policies.
The main role of insurance is to help people financially protect themselves against expected events.
The main role of insurance is to help people financially protect themselves against expected events.
Most people do not have any kind of insurance for their car, house, or life.
Most people do not have any kind of insurance for their car, house, or life.
Life, health, homeowners, commercial building, and auto are not the most common forms of insurance.
Life, health, homeowners, commercial building, and auto are not the most common forms of insurance.
Life insurance guarantees payment to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
Life insurance guarantees payment to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
Endowment plans with educational benefits payable are one of the features offered by insurance companies in addition to life insurance.
Endowment plans with educational benefits payable are one of the features offered by insurance companies in addition to life insurance.
Whole Life Insurance Plans provide cash benefits starting at the end of the 5th policy year and every 3 years afterward until the age of 90.
Whole Life Insurance Plans provide cash benefits starting at the end of the 5th policy year and every 3 years afterward until the age of 90.
Insurance plans for women offer cash benefits equal to the face amount upon diagnosis of any covered female-specific critical illnesses and surgeries.
Insurance plans for women offer cash benefits equal to the face amount upon diagnosis of any covered female-specific critical illnesses and surgeries.
Hospital income plans provide coverage for 5 years and offer a 25% return of premium if the insured outlives the coverage period.
Hospital income plans provide coverage for 5 years and offer a 25% return of premium if the insured outlives the coverage period.
Insurance companies only offer life insurance plans and no other types of insurance.
Insurance companies only offer life insurance plans and no other types of insurance.
An insurance plan with cash benefits allows the policyholder to enjoy the face amount when the policy matures, even if they are deceased.
An insurance plan with cash benefits allows the policyholder to enjoy the face amount when the policy matures, even if they are deceased.
The younger you are when you get insurance, the higher the premium will be.
The younger you are when you get insurance, the higher the premium will be.
Travel insurance only covers losses associated with domestic travel, not international travel.
Travel insurance only covers losses associated with domestic travel, not international travel.
Insurance policies usually consist of the premium, policy limit, and co-payment.
Insurance policies usually consist of the premium, policy limit, and co-payment.
Single pay front-end load insurance plans provide protection until age 88.
Single pay front-end load insurance plans provide protection until age 88.
It is advisable to religiously pay insurance premiums to avoid any lapse that may impact the benefits of the insurance plan.
It is advisable to religiously pay insurance premiums to avoid any lapse that may impact the benefits of the insurance plan.
Insurance policies are primarily used to protect against losses that may result from damage to a third party.
Insurance policies are primarily used to protect against losses that may result from damage to a third party.
Life insurance is not considered one of the most common forms of insurance.
Life insurance is not considered one of the most common forms of insurance.
The Deductible, policy limit, and premium are core components of most insurance policies.
The Deductible, policy limit, and premium are core components of most insurance policies.
Health insurance is not mentioned as one of the most common forms of insurance.
Health insurance is not mentioned as one of the most common forms of insurance.
The key role of insurance is to help people financially protect themselves against predictable events such as routine medical check-ups.
The key role of insurance is to help people financially protect themselves against predictable events such as routine medical check-ups.
Insurance companies do not pool clients' risks to make payments more affordable for the insured.
Insurance companies do not pool clients' risks to make payments more affordable for the insured.
Endowment plans with educational benefits payable are not typically offered by insurance companies in addition to life insurance.
Endowment plans with educational benefits payable are not typically offered by insurance companies in addition to life insurance.
Travel insurance covers losses associated with both domestic and international travel.
Travel insurance covers losses associated with both domestic and international travel.
Single pay front-end load insurance plans provide protection until age 70.
Single pay front-end load insurance plans provide protection until age 70.
Insurance companies require borrowers to have insurance coverage for the full or fair value of a property to finance a residential real estate transaction.
Insurance companies require borrowers to have insurance coverage for the full or fair value of a property to finance a residential real estate transaction.
Health insurance policies with higher deductibles result in more small claims due to lower annual premiums.
Health insurance policies with higher deductibles result in more small claims due to lower annual premiums.
Auto insurance is not necessary to protect a car investment when buying or leasing a vehicle.
Auto insurance is not necessary to protect a car investment when buying or leasing a vehicle.
The three critical components of most insurance policies are premium, policy limit, and deductible.
The three critical components of most insurance policies are premium, policy limit, and deductible.
Insurance companies determine premiums based on the insured individual's credit score only.
Insurance companies determine premiums based on the insured individual's credit score only.
Policy limit refers to the minimum amount that an insurer will pay under a policy for a covered loss.
Policy limit refers to the minimum amount that an insurer will pay under a policy for a covered loss.
Higher policy limits often come with lower premiums in insurance policies.
Higher policy limits often come with lower premiums in insurance policies.
Whole Life Insurance Plans provide cash benefits starting at the end of the 5th policy year and every 3 years afterward until the age of 90.
Whole Life Insurance Plans provide cash benefits starting at the end of the 5th policy year and every 3 years afterward until the age of 90.
Health insurance policies with lower deductibles tend to have lower annual premiums compared to policies with higher deductibles.
Health insurance policies with lower deductibles tend to have lower annual premiums compared to policies with higher deductibles.
An endowment plan with educational benefits payable is not a type of insurance offered by insurance companies.
An endowment plan with educational benefits payable is not a type of insurance offered by insurance companies.
A Whole Life Insurance Plan provides cash benefits starting at the end of the 5th policy year.
A Whole Life Insurance Plan provides cash benefits starting at the end of the 5th policy year.
Insurance plans for women do not provide cash benefits upon diagnosis of any covered female-specific critical illnesses and surgeries.
Insurance plans for women do not provide cash benefits upon diagnosis of any covered female-specific critical illnesses and surgeries.
Hospital income plans provide coverage for 15 years and offer a 25% return of premium if the insured outlives the coverage period.
Hospital income plans provide coverage for 15 years and offer a 25% return of premium if the insured outlives the coverage period.
Life insurance policies guarantee that the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
Life insurance policies guarantee that the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
Insurance companies do not offer any type of insurance plan other than life insurance.
Insurance companies do not offer any type of insurance plan other than life insurance.
An insurance policy with back-end load typically requires the policyholder to pay a fee upon purchasing the policy.
An insurance policy with back-end load typically requires the policyholder to pay a fee upon purchasing the policy.
Travel insurance is primarily designed to protect against financial losses associated with traveling abroad.
Travel insurance is primarily designed to protect against financial losses associated with traveling abroad.
The premium for an insurance policy tends to be lower if the policy is purchased at a younger age.
The premium for an insurance policy tends to be lower if the policy is purchased at a younger age.
Insurance policies with cash benefits allow the policyholder to receive the face amount only after their death.
Insurance policies with cash benefits allow the policyholder to receive the face amount only after their death.
Paying insurance premiums regularly is crucial to avoid any default that may impact the benefits of the insurance plan.
Paying insurance premiums regularly is crucial to avoid any default that may impact the benefits of the insurance plan.
The older you are when you get an insurance policy, the lower the premium tends to be.
The older you are when you get an insurance policy, the lower the premium tends to be.
What is the main purpose of insurance as described in the text?
What is the main purpose of insurance as described in the text?
In insurance, what does the policyholder receive from the insurance company?
In insurance, what does the policyholder receive from the insurance company?
What is the primary reason insurance companies pool clients' risks according to the text?
What is the primary reason insurance companies pool clients' risks according to the text?
What are the core components of most insurance policies?
What are the core components of most insurance policies?
What does a Loss Ratio primarily assess in insurance financial analysis?
What does a Loss Ratio primarily assess in insurance financial analysis?
Which type of insurance is NOT mentioned as one of the most common forms of insurance in the text?
Which type of insurance is NOT mentioned as one of the most common forms of insurance in the text?
What is the main role of insurance according to the text?
What is the main role of insurance according to the text?
Which factor primarily influences the premium of an insurance policy as mentioned in the text?
Which factor primarily influences the premium of an insurance policy as mentioned in the text?
What does the policy limit define in an insurance policy?
What does the policy limit define in an insurance policy?
What is typically true about insurance plans with higher policy limits according to the text?
What is typically true about insurance plans with higher policy limits according to the text?
Which statement accurately describes the calculation of premium in insurance policies?
Which statement accurately describes the calculation of premium in insurance policies?
How does understanding the components of an insurance policy help in selecting the best policy?
How does understanding the components of an insurance policy help in selecting the best policy?
What does the face value of a general life insurance policy represent?
What does the face value of a general life insurance policy represent?
How does a high deductible impact the cost of an insurance policy?
How does a high deductible impact the cost of an insurance policy?
What type of insurance policy is recommended for individuals with chronic health issues?
What type of insurance policy is recommended for individuals with chronic health issues?
Why do mortgage companies typically require home insurance from borrowers?
Why do mortgage companies typically require home insurance from borrowers?
What is a crucial consideration when purchasing or leasing a car?
What is a crucial consideration when purchasing or leasing a car?
Which type of insurance is primarily designed to protect against financial losses associated with traveling abroad?
Which type of insurance is primarily designed to protect against financial losses associated with traveling abroad?
What does a Whole Life Insurance Plan provide starting at the end of the 6th policy year and every 2 years afterwards until the age of 100?
What does a Whole Life Insurance Plan provide starting at the end of the 6th policy year and every 2 years afterwards until the age of 100?
What is the main feature of an Insurance plan for women mentioned in the text?
What is the main feature of an Insurance plan for women mentioned in the text?
What is the primary coverage period provided by a Hospital income plan as mentioned in the text?
What is the primary coverage period provided by a Hospital income plan as mentioned in the text?
Which type of insurance plan offers cash benefit equal to a percentage of the Face Amount starting at a specific policy year until age 100?
Which type of insurance plan offers cash benefit equal to a percentage of the Face Amount starting at a specific policy year until age 100?
In addition to life insurance, which insurance plan promises cash benefit upon diagnosis of female-specific critical illnesses and surgeries?
In addition to life insurance, which insurance plan promises cash benefit upon diagnosis of female-specific critical illnesses and surgeries?
When does a Whole Life Insurance Plan start providing cash benefit equal to a percentage of the Face Amount?
When does a Whole Life Insurance Plan start providing cash benefit equal to a percentage of the Face Amount?
Which component is NOT mentioned as part of most insurance policies according to the text?
Which component is NOT mentioned as part of most insurance policies according to the text?
What is a recommended strategy regarding the age at which insurance should be obtained?
What is a recommended strategy regarding the age at which insurance should be obtained?
What is advised regarding the payment of insurance premiums based on the text?
What is advised regarding the payment of insurance premiums based on the text?
Which insurance plan allows the policyholder to enjoy the face amount when it matures, even if they are alive?
Which insurance plan allows the policyholder to enjoy the face amount when it matures, even if they are alive?
What is a key benefit of a single pay back-end load investment-linked insurance plan according to the text?
What is a key benefit of a single pay back-end load investment-linked insurance plan according to the text?
What distinguishes travel insurance from other types of insurance?
What distinguishes travel insurance from other types of insurance?
What is the policy limit in an insurance policy?
What is the policy limit in an insurance policy?
How is an insurance policy's premium determined?
How is an insurance policy's premium determined?
What role does the deductible play in an insurance policy?
What role does the deductible play in an insurance policy?
Why do higher policy limits usually come with higher premiums?
Why do higher policy limits usually come with higher premiums?
What does an insurance company consider when determining an individual's premium?
What does an insurance company consider when determining an individual's premium?
Which component of an insurance policy determines how much an insurer will pay under that policy for a covered loss?
Which component of an insurance policy determines how much an insurer will pay under that policy for a covered loss?
What does a life insurance policy guarantee according to the text?
What does a life insurance policy guarantee according to the text?
What type of insurance plan provides cash benefits equal to a percentage of the Face Amount starting at the end of the 6th policy year and every 2 years afterwards until the age of 100?
What type of insurance plan provides cash benefits equal to a percentage of the Face Amount starting at the end of the 6th policy year and every 2 years afterwards until the age of 100?
Which insurance plan provides cash benefits equal to the face amount upon diagnosis of any covered female-specific critical illnesses and surgeries?
Which insurance plan provides cash benefits equal to the face amount upon diagnosis of any covered female-specific critical illnesses and surgeries?
What is the primary feature of an Endowment plan with educational benefits payable?
What is the primary feature of an Endowment plan with educational benefits payable?
In insurance policies, what does a Hospital income plan offer after the coverage period?
In insurance policies, what does a Hospital income plan offer after the coverage period?
What distinguishes a Whole Life Insurance Plan from other insurance plans mentioned in the text?
What distinguishes a Whole Life Insurance Plan from other insurance plans mentioned in the text?
What is the primary purpose of insurance according to the text?
What is the primary purpose of insurance according to the text?
Which components make up most insurance policies according to the text?
Which components make up most insurance policies according to the text?
How do insurance companies make payments more affordable for the insured?
How do insurance companies make payments more affordable for the insured?
What do insurance policies hedge against according to the text?
What do insurance policies hedge against according to the text?
Which factor primarily helps in making insurance payments more affordable for the insured?
Which factor primarily helps in making insurance payments more affordable for the insured?
What is the core purpose of an insurance contract according to the text?
What is the core purpose of an insurance contract according to the text?
What term is used to describe the maximum amount an insurer will pay to a beneficiary upon the death of the insured?
What term is used to describe the maximum amount an insurer will pay to a beneficiary upon the death of the insured?
In insurance, why are policies with very high deductibles typically less expensive?
In insurance, why are policies with very high deductibles typically less expensive?
What type of insurance is recommended for individuals with chronic health issues according to the text?
What type of insurance is recommended for individuals with chronic health issues according to the text?
Which insurance policy component must be satisfied by the policyholder before the insurer pays a claim?
Which insurance policy component must be satisfied by the policyholder before the insurer pays a claim?
What is the primary purpose of health insurance policies with lower deductibles according to the text?
What is the primary purpose of health insurance policies with lower deductibles according to the text?
Which type of insurance is typically mandated by mortgage companies for property owners?
Which type of insurance is typically mandated by mortgage companies for property owners?
Which type of insurance plan provides protection until age 88 with a single pay and front-end load?
Which type of insurance plan provides protection until age 88 with a single pay and front-end load?
What is the primary reason provided in the text for getting insurance at a younger age?
What is the primary reason provided in the text for getting insurance at a younger age?
In insurance, what are the core components mentioned to make up most insurance policies according to the text?
In insurance, what are the core components mentioned to make up most insurance policies according to the text?
Why is it advisable in the text to religiously pay the insurance premiums?
Why is it advisable in the text to religiously pay the insurance premiums?
What is recommended in the text to be included in an insurance plan for you to enjoy the face amount when it matures while you are still alive?
What is recommended in the text to be included in an insurance plan for you to enjoy the face amount when it matures while you are still alive?
What is emphasized in the text regarding the travel insurance policy?
What is emphasized in the text regarding the travel insurance policy?
Study Notes
- Information asymmetry in insurance transactions can lead to adverse selection and moral hazard.
- Adverse selection occurs when one party has more information before the transaction, like a person with cancer buying life insurance.
- Solutions to adverse selection include medical examinations and gathering other relevant information.
- Moral hazard happens when one party takes excessive risks after the transaction, like driving recklessly after buying vehicle insurance.
- Solutions to moral hazard include implementing a deductible clause and increasing premiums for certain actions.
- Common ratios used in financial statement analysis for insurance companies include expense ratio, loss ratio, combined operating ratio, and insurance margin.
- Insurance regulations set by the Insurance Commission under the Department of Finance dictate minimum capital requirements, with new businesses needing at least P1,000,000,000 in paid-up capital.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
