4.1.1 Insurance Payment Flashcards
(6 cards)
1
Q
what is an insurance payment?
A
the amount paid by the insurer
2
Q
what is a deductible?
A
A deductible is the amount of money you are required to pay out-of-pocket for a covered service before your insurance company starts to pay for those services
3
Q
how do you we think of a deductible mathematically?
A
4
Q
how do find the expected value and 2nd moment of a deductible using prob function and survival function method?
A
5
Q
what is true if a loss amt is modeled by a exponential distribution?
A
we can apply the memoryless property to more efficiently calculate the moments of the insurance payment random variable.
6
Q
what is true if a loss amt is modeled by a uniform distribution?
A
then the conditional distribution of loss amount is also uniform.
