Problems Chapter 12 Social Insurance 1. A number of websites, such as https://www.fidelity.com/life-insurance/term-life-insurance/overview, offer instant quotes for term life insurance. Use one such website to compare monthly premiums for a $1 million, 20-year, term life insurance policy for a 45-year-old man and a 45-year-old woman. Assume each is in excellent health and does not use tobacco. Explain the difference in quotes for the man and the woman. Suppose the U.S. government were to pass a nondiscrimination law requiring insurers to offer the same prices for men and women. What effect would you expect this law to have on prices and insurance coverage? 2. What is consumption smoothing? How does insurance help people smooth consumption? 3. Why might government provision of insurance lead to a larger number of insurance claims than private provision of insurance would? 4. Why does the government mandate individuals to purchase their own insurance in some casessuch as automobile liability insurancebut directly provide insurance to people in other situationssuch as health insurance