Suppose a group of 1 0 0 people seeks out an insurance company to underwrite health insurance

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose a group of

100

people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $

150, 000 .

What will the average premium be if the health insurance company estimates the premium adding net loading costs of

15

percent?

Posted Date: May 18, 2024 10:07 PM

See More Questions

Which of these is located farthest south? Crete O Sardinia Sicily Corsica
Why do the measures used in a balanced scorecard differ from company to company?
Describe the difference in the mix of assets in an investment portfolio held by (a) life insurance companies, (b) general insurance companies.
A student finds the number of edges in a complete graph by taking half the number of vertices, then subtracting one from the number of vertices, then multiplying these two values together. Will the...
1. Although it usually doesnt involve physically stealing money, financial statement fraud is commonly considered the most expensive type of fraud. Why is this true? 2. The Sarbanes-Oxley Act of 2002...
Best Cupcakes Inc. produces a variety of high - quality cupcakes. The company just received a special order to produce 3 0 0 cupcakes with a modified flavour and frosting. Each regular cupcake costs...
do Employee behaviors also have an impact on how companies forecast?
An economist has forecast that the term structure of interest rates will remain flat. According to the liquidity preference theory, what does the economist's forecast imply will happen to future...
TGIS Inc. wants to have $700,000 set aside for a major expansion of the greenhouses in 4 years. How much would the need to set aside now if they can save $9,000 each month at a 8.25% return
Using Expected Utility Theory answer the following. Billy is deciding whether or not to have surgery. If he has the surgery, there is a 0.9 chance that he will recover full health and a 0.1 chance...
Sikes Hardware is adding a new product line that will require an investment of $1,500,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $330,000...
The following information was extracted from the first year absorption-based accounting records of Enigma Corporation Total fixed costs incurred P100,000 Total variable costs incurred 50,000 Total...
_________________ Inventory Management : When a firm acquires inventory precisely when needed so that its inventory balance is always zero, or very close to it. Question 34 options: Economic order...
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
Elements of Internal Control OBJECTIVE 2 Discuss five elements of internal control. Required: Define and discuss these five elements of internal control. Brief Exercise
Petty Cash with Change in Fund Balance} Basque Ltd. maintains a petty cash fund with a balance of $\$ 800$. On December 31, Basque's petty cash account has a balance of $\$ 60$. Basque...
Role of Internal Control Internal controls play a crucial role in a business. Required: CONCEPTUAL CONNECTION Discuss why internal controls are important. What are the potential consequences of an...

Suppose a group of 1 0 0 people seeks out an insurance company to underwrite health insurance

Question:

Expert Answer:

Students also viewed these finance questions