.6. What is the relationship between the following functions within an insurance company?a. Marketing and underwritingb. Underwriting and actuarialc. Actuarial and investmentd. Legal and underwritinge. Claims and marketingf. Claims adjusting and actuarial

Your acquaintance, Nancy Barns, recently commented to you that she and her husband want toreevaluate their homeowners insurance. Nancy said that it seemed the only time they ever had anycontact with their present insurance agency was when a premium was due. Nancy asked if you knewof a good agency.a. Help Nancy set up standards to evaluate and choose a good agent.b. Review with her the standards of education and experience required of an agent,including the CPCU designation.Read the box, Note 7.38 "Problem Investments and the Credit Crisis", in this chapter and respondto the following questions:a. Use the asset and liabilities of life insurers in their balance sheets to explain why losses inmortgage-backed securities can hurt the net worth of insurers.Saylor URL: http://www.saylor.org/books Saylor.org328b. Insurance brokers have been very busy since the troubles of AIG became publicknowledge. Why are these brokers busier? What is the connection between AIGs troublesand the work of these brokers?c. What is the cause of AIGs problems? Explain in the context of assets and liabilities.Respond to the following:a. If you have an auto policy with insurer XYZ that is deeply hurt by both mortgage-backedsecurities and Hurricane Ike, do you have any protection in case of losses to your ownauto (not caused by another driver)? Explain in detail.b. If you have an auto policy with insurer XYZ that is deeply hurt by both mortgage-backedsecurities and Hurricane Ike, do you have any protection in case of losses to your ownauto and to your body from an accident that was caused by another driver (you are not atfault)? Explain in detail.

You are reading the Sunday newspaper when you notice a health insurance advertisement thatoffers the purchase of insurance through the mail and the first months coverage for one dollar. Theinsurance seems to be a real bargain.a. Are there any problems you should be aware of when buying insurance through the mail?b. Explain how you could cope with the problems you listed above if you did purchasecoverage through the mail.