Section H Flashcards
nonstandard insurance programs
specialized high risk programs
Joint Underwriting Association (JUA)
an organization that provides insurance to the residual market
How does the maryland state fund work
the private insurers need to subsidize the losses, so they will in turn charge a surcharge to their own insureds
main candidates for FAIR plans
those in urban areas that are susceptible to damage caused by riots and civil commotion. some also provide coverage for coastal properties that are exposed to windstorm damage, or homes located in hazardous brush areas
FAIR plans
Fair Access to Insurance Requirements. Provide coverage when insurers in the voluntary market can not offer coverage at a reasonable rate
If a policyholder wants more coverage from FAIR (other than fire and a few others),
a specialty insurer may offer a difference in condition (DIC) policy
Two options for states to structure a beachfront and windstorm plan
use a single service organization
operate as a policy issuing syndicate
In 1994, congress did what with crop insurance
made participation mandatory in order to be elgible for government benefits
private carrier vs state fund percentage of wC
private 56.7%
state funds 15%
Medicare, Medicaid and SCHIP Extension Act of 2007
requires claim payers to report data to the CMS. Must determine the medicare-enrollment status of all claimants and report certain information about those claims. in advance of this reporting deadline in 2010, there may have been an increase in claims closings and lump-sum payments
Guaranty funds
not for profit unincorporated entities established by state law. the pay most claims that would have been due and a portion of UEP
guaranty fund is only used to pay
obligations to policyholders, not general creditors
Who is responsible for NFIP
FEMA (Federal Emergency Management Agency0
longer term objective of NFIP
reduce federal expenditure on disaster assistance after floods
Why has FEMA needed to borrow from the US treasury to pay claims
Congress instructed FEMA not to charge actuarial rates for certain classes but did not provide FEMA with the money to fund the subsidies/discounts
