. A health insurance company charges policyholders a $2900 annual premium for health insurance for hospitalization....
. A health insurance company charges policyholders a $2900 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $3,250. Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice.
(a) Find the insurance company’s expected profit per policyholder.
(b) What is the expected profit if they enroll 80,000 policyholders?
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. A health insurance company charges policyholders a $2900
annual premium for health insurance for hospitalization....
. A health insurance company charges policyholders a $2250 annual premium for health insurance for hospitalization....
. A health insurance company charges policyholders a $2250 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $3200. Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice. (a) Find the insurance company’s expected profit per policyholder. (b) What is the expected profit if they enroll 80,000 policyholders?
. A health insurance company charges policyholders a $2450 annual premium for health insurance for hospitalization....
. A health insurance company charges policyholders a $2450 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $3700. Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice. (a) Find the insurance company’s expected profit per policyholder. (b) What is the expected profit if they enroll 80,000 policyholders?
A health insurance company sold insurance policies that allow policyholders to obtain services from selected hospitals....
A health insurance company sold insurance policies that allow policyholders to obtain services from selected hospitals. The policies fully disclosed the names of these hospitals. However, the insurance company did not mention that the hospitals did not have the capability to perform certain costly procedures, such as heart bypass operations. As a result, if a policyholder one day developed a severe heart blockage, the patient would not have insurance coverage to pay for such a heart bypass procedure. a. If...
A health insurance company sold insurance policies that allow policyholders to obtain services from selected hospitals....
A health insurance company sold insurance policies that allow policyholders to obtain services from selected hospitals. The policies fully disclosed the names of these hospitals. However, the insurance company did not mention that the hospitals did not have the capability to perform certain costly procedures, such as heart bypass operations. As a result, if a policyholder one day developed a severe heart blockage, the patient would not have insurance coverage to pay for such a heart bypass procedure. a. If...
Suppose a company charges an annual premium of $450 for a fire insurance policy. In case...
Suppose a company charges an annual premium of $450 for a fire insurance policy. In case of a fire claim, the company will pay out an average of $100,000. Based on actuarial studies, it determines that the probability of a fire claim in a year is 0.004. What is the expected annual profit of a fire insurance policy for the company? What annual profit can the company expect if it issues 1000 policies?
Suppose a company charges an annual premium of $140 for an insurance policy for minor injuries....
Suppose a company charges an annual premium of $140 for an insurance policy for minor injuries. Actuarial studies show that in case of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an overnight stay in the hospital. They also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an...
An insurance company will insure a $220,000 home for its total value for an annual premium...
An insurance company will insure a $220,000 home for its total value for an annual premium of $590. If the company spends $30 per year to service such a policy, the probability of total loss for such a home in a given year is 0.001 and you assume either total loss or no loss will occur, what is the company's expected annual gain (or profit) on each such policy? OA $290 O B. $340 O C. -$220 O D. $370...
An insurance company insures a person's antique coin collection worth $20,000 for an annual premium of...
An insurance company insures a person's antique coin collection worth $20,000 for an annual premium of $300. If the company figures that the probability of the collection being stolen is 0.002, what will be the company's expected profit? PLEASE CREATE CHART
Aflac Insurance Company InformatIon: Aflac is a Fortune 500 insurance company founded in 1955 by three...
Aflac Insurance Company InformatIon: Aflac is a Fortune 500 insurance company founded in 1955 by three brothers, John, Paul and Bill Amos. Today, Aflac employs more than 4,500 people and has more than 71,000 licensed independent agents throughout the United States and Japan. The following is an excerpt from the New York Stock Exchange business summary. “Aflac Incorporated is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services...
Consider ABC Company’s financial statements given below. This company belongs to the retail sector and the...
Consider ABC Company’s financial statements given below. This
company belongs to the retail sector and the current market price
is $20 per shares with 50,000 common shares outstanding. All net
income is re-invested back into the company. Assume the Company’s
beta on YEAR 0 is estimated to be 1.75, due to lack of historical
data. For the foreseeable future risk-free rate is 2.5%, and market
risk premium is 11%. Furthermore, assume the company has a
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Suppose a company charges an annual premium of $140 for an insurance policy for minor injuries. Actuarial studies show that in case of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an overnight stay in the hospital. They also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an...
An insurance company will insure a $220,000 home for its total value for an annual premium of $590. If the company spends $30 per year to service such a policy, the probability of total loss for such a home in a given year is 0.001 and you assume either total loss or no loss will occur, what is the company's expected annual gain (or profit) on each such policy? OA $290 O B. $340 O C. -$220 O D. $370...
Consider ABC Company’s financial statements given below. This
company belongs to the retail sector and the current market price
is $20 per shares with 50,000 common shares outstanding. All net
income is re-invested back into the company. Assume the Company’s
beta on YEAR 0 is estimated to be 1.75, due to lack of historical
data. For the foreseeable future risk-free rate is 2.5%, and market
risk premium is 11%. Furthermore, assume the company has a
long-term growth rate in comprehensive...
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