CAS

Question 1

CAS - Reasons for government participation in insurance

Answer 1

filling needs unmet by private insurance; cumpolsary purchase; convenience; greater efficiency; social purposes

Question 2

CAS - How to evaluate a government insurance program

Answer 2

is it necessary or provide social purpose private cannot; is it insurance or social welfare; is it efficient and accepted by public

Question 3

CAS - How does Secretary of State certify terroristm event

Answer 3

insured PandC losses greater than 5 million (now 100); dangerous to human life, property, or infrastrucutre; damage occurs in US; committed to coerce the population of the US

Question 4

CAS - Purposes TRIA serves

Answer 4

fills need unmet by private insurance and fulfills a social puropose; cannot estimate frequency and severity; large increase in demand; avoid economic disruptions

Question 5

CAS - Reason congress proposed insurance industry could handle risk

Answer 5

cat bonds to supplement coverage; demand for coverage not as great as initiallly expected

Question 6

CAS - Insuance association wants TRIA extended

Answer 6

cat bond market too small to provided needed additional capacity; availability substantially improved under TRIA