1. Explain how the "declining problem of premature death" - while great for you - can be a serious problem for a life insurer.
2. How can coinsurance in health insurance lead to a person paying more out-of-pocket for their health care visits/needs? [hint: the "co" in co-insurance is you! Also, premiums don't necessarily have to go down]
3. How can the insurance industries use of reinsurance go terribly wrong? [hint: think of the financial industry''s credit default swap crisis]
4. How could a private insurer that provides disaster insurance justify the following statement: "The private insurance industry feels that it cannot continue to provide coverage against hurricanes and earthquakes as it has done in the past without opening itself up to the possibility of insolvency or a significant loss of surplus