Actuarial Notes

CAS Exam 6C Fall 2017, Question 10

Study guide: Exam 6C

Part a (0.5 points)

Briefly describe two methods of loss subsidization that a government insurer can use to fill insurance needs unmet by private insurance.

Part b (1 point)

Identify and briefly describe two reasons for government participation in insurance, other than to fill insurance needs unmet by private insurance.

Part c (0.5 points)

For each of the reasons provided in part b. above, briefly describe one situation in which the reasoning for government participation in insurance may not be justified.

Part d (1 point)

Contrast insurance and social welfare programs with respect to:

  • i. Source of funding
  • ii. Trigger of payment

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Concepts tested

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