CAS Exam 6C Fall 2013, Question 14
Study guide: Exam 6C
Part a (1 point)
Identify four reasons why offering flood insurance may be beneficial as part of the typical Canadian homeowner's policy.
Part b (2 points)
An actuary has been hired to design a residential flood insurance program for the Canadian market. Describe four considerations of the actuary's proposed program.
Part c (0.5 points)
Briefly explain how flood insurance could increase the risk of moral hazard on the part of:
- i. The insured.
- ii. The government.
Answer this question and see the worked solution