3. The Maryland Insurance Company wants to raise its rates for automobile drivers across the state, with 30% increases in the Baltimore area, and 12% increases everywhere else. Assume the company can justify these rates based on losses and expenses. Let's say Maryland is a file-and-use rating state. Explain what that means for the company's planned increases. Describe regulatory restrictions on investments of insurers, and how they differ between life insurers and property-casualty insurers. The Merced Insurance Company was an admitted insurer in California. It had concentrated its business in an area of California that was destroyed by wildfires, and as a result the company went bankrupt. It could not pay its insureds' claims, except for 10 for every dollarowed to insureds. Describe whether the insureds of Merced Insurance Company could recover any insurance money from another source after this bankruptcy. An insurance company has a combined ratio of 100%, yet says it is making money. Explain what the combined ratio is and whether the insurer's assertion could be correct Je r inger and a hal inger 14. An underwriter is reviewing an insurance application for new medium-size account, the premium is likely to be something over $80,000 for the property policy, that would have a $5,000,000 policy limit. The insured has had some small losses over the years, only a few exceeded the $30,000 deductible on those prior policies a. What benefit might the underwriter get by having its risk control department. review this account? b. The underwriter receives the risk control officer's report and is willing to write the account only if the recommended changes are done within 60 days. Explain what this means for the insured and the insurer. C. The risk control officer determines that the proposed insurance is appropriate for the building, but the insured has lots of inventory in a storage unit that is not insured now nor described on the application, and the insured does not have a liability umbrella Can the risk control officer report this back to the insurer? What is the insurer likely to do with this information? 3. The Maryland Insurance Company wants to raise its rates for automobile drivers across the state, with 30% increases in the Baltimore area, and 12% increases everywhere else. Assume the company can justify these rates based on losses and expenses. Let's say Maryland is a file-and-use rating state. Explain what that means for the company's planned increases. Describe regulatory restrictions on investments of insurers, and how they differ between life insurers and property-casualty insurers. The Merced Insurance Company was an admitted insurer in California. It had concentrated its business in an area of California that was destroyed by wildfires, and as a result the company went bankrupt. It could not pay its insureds' claims, except for 10 for every dollarowed to insureds. Describe whether the insureds of Merced Insurance Company could recover any insurance money from another source after this bankruptcy. An insurance company has a combined ratio of 100%, yet says it is making money. Explain what the combined ratio is and whether the insurer's assertion could be correct Je r inger and a hal inger 14. An underwriter is reviewing an insurance application for new medium-size account, the premium is likely to be something over $80,000 for the property policy, that would have a $5,000,000 policy limit. The insured has had some small losses over the years, only a few exceeded the $30,000 deductible on those prior policies a. What benefit might the underwriter get by having its risk control department. review this account? b. The underwriter receives the risk control officer's report and is willing to write the account only if the recommended changes are done within 60 days. Explain what this means for the insured and the insurer. C. The risk control officer determines that the proposed insurance is appropriate for the building, but the insured has lots of inventory in a storage unit that is not insured now nor described on the application, and the insured does not have a liability umbrella Can the risk control officer report this back to the insurer? What is the insurer likely to do with this information