You will have read the Hurricane Risk Case Study and will be prepared to discuss the following:

1. In P&C insurance - how does the insurance company make money?

2. If Joe Martinez buys his insurance is the policy and investment? If Suzanne Feller" making an investment?

3. Do you see purchasing insurance as an investment? What kind of return does it yield if yes?

4. What kind of coverage is Joe M. getting? Is Suzanne getting any coverage?

5. What should Joe M. do? Explain in detail why?

6. What should Suzanne F. do? Explain why?

7. What are Joe's and Suzanne's exposure to wind? Are the same or different and why?