KPMG et al

Question 1

KPMG et al - Determinations required for tort liability

Answer 1

determination of liability and amount of loss

Question 2

KPMG et al - Downsides of liability insurance

Answer 2

adversarial; compensation delayed by courts; future benefits paid up front; overcompensate low and undercompensate high severity

Question 3

KPMG et al - Administrative difficulties of combined system

Answer 3

what is default option; how do you handle claimants who arent policyholders; claimants have different types; premium determination when you dont know what kind theyll choose

Question 4

KPMG et al - Rationales for threshold system

Answer 4

introduction more palatable - compromise; tort transaction costs reduced; still allow individualized settlements for high severity victims

Question 5

KPMG et al - Types of thresholds

Answer 5

descriptive; monetary

Question 6

KPMG et al - Advantages of structured settlement

Answer 6

not income taxable in hands of recipient; recipient saves on gross-up and fund management fees; prevents squandering of large lump sums

Question 7

KPMG et al - Types of protection insurance provides

Answer 7

security; restitution; prevention

Question 8

KPMG et al - Social requirements of auto insurance

Answer 8

equitable and fair benefits; affordable and sustainable coverage; adequate benefits; presonal responsibility; promotes wellness; customer service