Joe has workers compensation insurance and healthcare coverage through his employer. Joe’s health insurance has a deductible while workers’ compensation does not. Joe injured his ankle playing basketball on a Saturday. To avoid paying for the deductible, Joe reports to his supervisor that he was injured when he was working. The case of Joe violates which of the following requirement of an insurable risk?

Consider a population of 1,200 individuals. Within this population, there are three types of individuals. The number of each type and its expected healthcare costs are listed in the table below, Types of individuals Number of individuals Expected healthcare costs Very healthy 400 $200 Moderate healthy 400 $800 Unhealthy  400 $1,500 Assume that all individuals are in the same risk pool for health insurance and that the insurer uses community rating. If we consider a strong individual mandate to purchase health insurance and all 1,200 individuals enter the risk pool, what is the “break-even” premium of this risk pool? (please round your answer to the nearest dollar) [p1]   Now suppose the penalty for not purchasing health insurance is less than the cost in question 1, and only 30% of the very healthy individuals, 80% of the moderately healthy individuals, and 100% of the unhealthy individuals enroll (as shown in the table below).  Types of individuals Number of individuals Expected healthcare costs Very healthy 120 $200 Moderate healthy 320 $800 Unhealthy  400 $1,500 What is the “break-even” premium of this risk pool under a weaker mandate? (please round your answer to the nearest dollar) [p2]

Person A faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $4. Person B faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $4. Person C faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $8.   Suppose a risk pool contains Person A and Person B only. Which of the following statements is(are) TRUE? I. In this risk pool, there is income transfer from those who do not have a loss to those who have a loss II. In this risk pool, there is income transfer from the low-risk individual to high-risk individual  

Person A faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $4. Person B faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $4. Person C faces a 50% chance of having a loss of $0 and a 50% chance of having a loss of $8. Suppose that Person C also purchases insurance and joins Person A in the insurer’s risk pool. Note that the risk pool now contains Person A and Person C only. The insurer charges both person A and person C a premium of $6. Which of the following statements is FALSE?

A recent ransomware attack on the MCM group pulls the alarm of cybersecurity for all businesses. According to cybersecurity statistics, there is a hacker attack every 39 seconds in 2023. At USF, we have moved from single password login to two-factor Microsoft Authenticator. Also, a very long and complicated password is required for all accounts, and an update for it every six months. What risk control technique is illustrated here?  

The distance of a house to the nearest fire station could be considered a physical hazard because:  

Consider a firm that has $10 in inventory.  They are considering two options with respect to the storage of this inventory.  Option A would have them store the entire inventory in one warehouse.  If it stores its inventory in a single warehouse, they are exposed to the risk of fire.   Assume that there is a 50% chance of a fire occurring, which would destroy their entire inventory.  Assume also that there is a 50% chance of having no fire. What is the expected loss for option A?  [exA] Derive the amount of risk (C.O.V) associated with option A. (Please round your answer to two decimal place) [COVA] Option B would have them split their entire inventory evenly across two warehouses; in other words, they would store $5 inventory in each warehouse.  Assume now that each warehouse individually faces the same probability distribution for severity [i.e., a 50% chance of losing the entire inventory and a 50% chance of losing nothing]. What is the expected loss for option B? [exB] Derive the amount of risk (C.O.V) associated with option B. (Please round your answer to two decimal place) [COVB]  

Consider a firm that has $8 in inventory.  They are considering two options with respect to the storage of this inventory.  Option A would have them store the entire inventory in one warehouse.  If it stores its inventory in a single warehouse, they are exposed to the risk of fire.   Assume that there is a 50% chance of a fire occurring, which would destroy their entire inventory.  Assume also that there is a 50% chance of having no fire. What is the expected loss for option A?  [exA] Derive the amount of risk (C.O.V) associated with option A. (Please round your answer to two decimal place) [COVA] Option B would have them split their entire inventory evenly across two warehouses; in other words, they would store $4 inventory in each warehouse.  Assume now that each warehouse individually faces the same probability distribution for severity [i.e., a 50% chance of losing the entire inventory and a 50% chance of losing nothing]. What is the expected loss for option B? [exB] Derive the amount of risk (C.O.V) associated with option B. (Please round your answer to two decimal place) [COVB]

Please match the following and use each answer only ONCE.

Infants in foster care who have experienced maltreatment followed by disruptions in early caregiving can develop attachment disorders.