GOVERNEMENT INSURERS - GENERAL Flashcards
1
Q
GOVERNEMENT INSURERS – GENERAL
REASONS FOR GOVERNMENT PARTICIPATION
A
- Making coverage available & affordable when absent in voluntary market
- Compulsory purchase of insurance (WC, auto) => must be made available & affordable
- Convenience => easier for government to set up program quickly
- Greater efficiency => lower costs through sharing of services between departments
- Social purposes
• Rehabilitation & vocational training of injured workers
• Protecting elderly & disabled
• Building codes & zoning requirements in flood zones
2
Q
GOVERNEMENT INSURERS – GENERAL
LEVELS OF GOVERNMENT PARTICIPATION AS AN INSURER
A
- Exclusive insurer
- Partnership with private insurer, as reinsurers on specific exposures
i. Federal – terrorism, crop, flood
ii. State – WC, residual auto, FAIR, windstorm - Competitor to private insurers – WC in some states