GOVERNEMENT INSURERS - GENERAL Flashcards

1
Q

GOVERNEMENT INSURERS – GENERAL

REASONS FOR GOVERNMENT PARTICIPATION

A
  1. Making coverage available & affordable when absent in voluntary market
  2. Compulsory purchase of insurance (WC, auto) => must be made available & affordable
  3. Convenience => easier for government to set up program quickly
  4. Greater efficiency => lower costs through sharing of services between departments
  5. Social purposes
    • Rehabilitation & vocational training of injured workers
    • Protecting elderly & disabled
    • Building codes & zoning requirements in flood zones
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2
Q

GOVERNEMENT INSURERS – GENERAL

LEVELS OF GOVERNMENT PARTICIPATION AS AN INSURER

A
  1. Exclusive insurer
  2. Partnership with private insurer, as reinsurers on specific exposures
    i. Federal – terrorism, crop, flood
    ii. State – WC, residual auto, FAIR, windstorm
  3. Competitor to private insurers – WC in some states
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