Explain why and how insurance contracts are used by Risk analysist in the course of their work for the insurance company.

Research a recent (i.e., within the last 5 years) National Association of Insurance Commissioners (NAIC) Model Law. Present an explanation and endorsement of the law, including:

National Association of Insurance Commissioners (NAIC) Model Law

why you believe the insurance regulators in your state should encourage adoption of that law.

Provide a detailed explanation regarding why the principle of insurable interest exists in insurance contracts. Taking a 'devil's advocate' approach:

Describe how and why this principle should be eliminated from insurance contracts.

Provide a detailed description of one bad faith tactic used by insurers. (Please do not use the examples from the course slides.) Explain at least two ways that insurance regulators can, or do, attempt to control this type of bad faith.

The following passage is taken from a Business Income and Extra Expense Coverage Form written by the Insurance Services Office for business income (i.e., business interruption) coverage when organizations must suspend operations due to a covered cause of loss.

"We will pay for the actual loss of Business Income you sustain due to the necessary "suspension" of your "operations" during the "period of restoration". The "suspension" must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit of Insurance is shown in the Declarations. The loss or damage must be caused by or result from a Covered Cause of Loss."

There is current debate regarding whether the presence of a virus, or the threat of the presence of a virus, constitutes 'physical loss of or damage to property' and whether organizations that were required to suspend operations due to the COVID-19 pandemic should have coverage for loss of revenue and extra expenses associated with the shutdown. Using articles regarding recent court cases on this issue, take, and defend, a stance on whether you believe private insurers should be required to pay these losses