Assignment:
CRITICAL TERMS and QUESTIONS - Risk and Insurance & Real Estate (A Preliminary List)
1. Define Risk and Risk Management. Name several different strategies of risk management. Define the following terms: pure risk vs speculative risk, diversification, insurance, hedging.
2. Distinguish between the terms: Life Insurance vs Life Assurance. What types of financial contracts fall into each group. Why is an annuity sometimes seen as the opposite of life insurance? What is the difference between a mutual and a stock insurance company? What's unique about mutual company 'dividends'?
3. What environmental forces have dramatically changed the life insurance business in recent decades? What is the meaning and significance of the phrase "buy term and invest the difference". Define the following terms Permanent, Whole Life, Cash Value, Term insurance, Underwriting, Personal, Viaticals, Insurable Interest.
4. What types of risks are covered by Property and Casualty Insurance Companies? How do the following terms relate to P& C insurance: Indemnification, Underwriting, Individual, Group, Accidental Death, Ratings, Exclusions, Endowments, Annuities, Modified annuities
5. Is heath insurance a public or private good? What has been the controversy surrounding the decisions with the Affordable Health Care Act (Obamacare)? What are the pros and cons of public vs. private health coverage? What are the issues with individual vs. group coverage, deductibles and copays, pre-existing conditions?
6. How important is homeownership in the American economy and society? What are the typical methods used for financing personal home ownership? Why was the housing industry seen as the cause of the financial crisis of 2008?
7. What are the multiple ways investors look to make money in real estate? What are the pluses and minuses of real estate as an investment compared to other assets, esp. equities? What are REITS and why are they important in real estate investing.