Learning outcomes: Describe moral hazard and adverse selection risks facing insurance companies, provide examples of each, and describe how to overcome these problems. Evaluate the capital requirements for life insurance and property-casualty insurance companies. Compare the guaranty system and...
Learning objectives: Distinguish between mortality risk and longevity risk and describe how to hedge these risks. Evaluate the capital requirements for life insurance and property-casualty insurance companies. Compare the guaranty system and the regulatory requirements for insurance companies...
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