Assume that the market for life insurance currently consists…

Assume that the market for life insurance currently consists of companies that write insurance using only age, gender, and smoking as underwriting criteria.   What segment of the market might you attract with the strategy? (Remember, you are an insurance company that wants to make money so make sure you are attracting a desirable market).

Assume the following group of 150 potential insured’s for he…

Assume the following group of 150 potential insured’s for health insurance:                             High risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $3600/insured                 Medium risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $2400/insured                 Low risk group (50 potential insured’s)               Expected Annual Cost of Health Care Expenditures = $1200/insured       Also assume that the insurer is unable to distinguish one class from another and yet the   insured’s have good information regarding their particular risk.   What would be the expected annual cost of health care per insured if all were insured?