Journal of Risk and Insurance

This academic risk management and insurance journal provides research in industrial organization of insurance markets, management of risks in the private and public sectors, insurance regulation and more.

Articles from Vol. 67, No. 1, March

A Class of Distortion Operators for Pricing Financial and Insurance Risks
ABSTRACT This article introduces a class of distortion operators, [g.sub.[alpha]] (u) = [phi][[[phi].sup.-1](u) + [alpha]], where [phi] is the standard normal cumulative distribution. For any loss (or asset) variable X with a probability distribution...
Alternative Dispute Resolution in the Workplace: Concepts and Techniques for Human Resource Executives and Their Counsel
Alternative Dispute Resolution in the Workplace: Concepts and Techniques for Human Resource Executives and Their Counsel, by E. Patrick McDermott with Arthur Eliot Berkeley,1996, Westport, CT: Quorum Books. Reviewers: Penelope R. Mercurio-Jennings and...
Indiana Supreme Court Approves Insurer Use of In-House Counsel to Defend Policyholders from Third-Party Claims but Forbids Captive Law Firms from Portraying Themselves as outside Councel
Cincinnati Insurance Company v. Wills, 717 N.E.2d 151 (Indiana Supreme CourtOctober 6,1999) In recent years, there has been considerable focus on the legal ethics of representation of policyholders pursuant to liability policies. Recently, the Indiana...
In-Home Babysitting Falls within "Business Pursuits" Exclusion in Homeowner's Policy; Coverage Denied for Suit Arising out of Injury to Child in Home
Dwello v. American Reliance Insurance Co., 990 P2d 190 (Nevada Supreme CourtDecember 28,1999) Alisa Dwello was a working mother with a seven-year-old daughter. She arranged for her neighbor, Patty Kenyon, to care for the girl while Dwello worked. Kenyon...
International Property-Liability Insurance Consumption
ABSTRACT During the 1980s and early 1990s, the world insurance market grew substantially. World insurance premiums in 1993 accounted for about 8 percent of world gross domestic product (GDP), compared to 4 percent in 1984. This article explains...
Introduction to Risk Management
Introduction to Risk Management, first edition, by Warren T. Hope,1998, Malvern, PA: Insurance Institute of America Reviewer: Kathleen S. McNichol, La Salle University Introduction to Risk Management is the first risk management text designed for the...
Liquidity, Estate Liquidation, Charitable Motives, and Life Insurance Demand by Retired Singles
ABSTRACT In this article, a model of life insurance holding is formulated. It takes into account the liquidation values and liquidity of estate assets and the ability of life insurance death benefits to bypass the probate process. Tobit regressions...
Media Attention, Insurance Regulation, and Liability Insurance Pricing
ABSTRACT The goal of this article is to test whether the threat of regulating (or of more stringent regulation of) automobile liability insurance as portrayed in the popular and industry press induces insurers to change the way they price their...
Nevada Employers Are Not Immunized from Suit for Indemnity by Power Company, but Scope of Power Company's Idemnity Rights Is Limited by Court's Statutory Interpretation
Nevada Power Co. v. Haggerty, 989 P 2d 870 (Nevada Supreme Court-December 13,1999) A Nevada statute provides that a power company subject to a personal injury judgment may seek indemnity from other tortfeasors contributing to the injury. Does the power...
New York of Appeals Permits Policyholders of "Vanishing Premium" Life Insurance of Plead Cause of Action for Deceptive Practices Pursuant to Statute but Rejects Common Law Fraud Claim
Gaidon v. Guardian Life Insurance Co. of America, 94 N.Y.2d 330, 725 NE21 598, 704 N.YS 2d 177,1999 N.Y. LEXIS 3932 (New York Court of Appeals-December 20,1999). A litigation issue of the current moment involves a life insurance product popular during...
On the Demand for Corporate Property Insurance
ABSTRACT Since changes in the firm-specific or unsystematic risks faced by a corporation have no effect on firm value, corporate insurance purchases might seem unwarranted. However, more than 57 percent of insurance premiums are paid by businesses....
Optimum Crop Insurance under Joint Yield and Price Risk
ABSTRACT This article examines the design of an optimal policy for an insurable risk in the presence of another uninsurable risk. In the context of incomplete markets, indemnity payments are made whenever the insurable realized index is lower or...
Preponderance of the Evidence Standard-Rather Than Clear and Convincing Evidence Standard-Governs Issue of Bad Faith under State Statute Designed to Encourage Insurers to Act
Nationwide Mutual Insurance Co. v. St. John, 2000 Va. LEXIS 2 (Virginia Supreme CourtJanuary 14, 2000) Nationwide Insurance did not win everything it sought from the Virginia Supreme Court thus far this year. In a decision rendered the same day as Nationwide...
Rational Risk Policy
Rational Risk Policy, by W. Kip Viscusi, Harvard Law School, Oxford: Clarendon Press Reviewer: William Feldhaus, Georgia State University This book is the written version of a series of lectures delivered by the author at the Lund University in Sweden...
Recent Court Decisions
VIRGINIA SUPREME COURT OVERTURNS $100 MILLION PUNITIVE DAMAGES VERDICT IN DISCRIMINATION CASE ON GROUND THAT HOUSING RIGHTS ORGANIZATION LACKED STANDING To BRING SUIT Nationwide Mut. Ins. Co. v. Housing Opportunities Made Equal, Inc., 2000 Va. LEXIS...
Stochastic Upper Bounds for Present Value Functions
ABSTRACT In most practical cases, it is impossible to find an explicit expression for the distribution function of the present value of a sequence of cashflows that are discounted using a stochastic return process. In this article, the authors present...
The Politics of Automobile Insurance Reform: Ideas, Institutions, and Public Policy in North America
The Politics of Automobile Insurance Reform: Ideas, Institutions, and Public Policy in North America, by Edward L. Lascher, Jr.,1999, Washington: Georgetown University Press Reviewer: William L. Ferguson, The University of Louisiana at Lafayette The...
Virginia Supreme Court Overturns $100 Million Punitive Damages Verdict in Discrimination Case on Ground That Housing Rights Organization Lacked Standing to Bring Suit
Nationwide Mut. Ins. Co. v. Housing Opportunities Made Equal, Inc., 2000 Va. LEXIS 1 (Virginia Supreme Court-January 14, 2000) opinion withdrawn and rehearing granted, 2000 VA. LEXIS 56 (March 3, 2000) The Virginia Supreme Court tossed out a punitive...