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Automobile Insurance: Actuarial Models (Huebner International Series on Risk, Insurance and Economic Security)

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Description

The mathematical theory of non-life insurance developed much later than the theory of life insurance. The problems that occur in the former field are far more intricate for several reasons: 1. In the field oflife insurance, the company frequently has to pay a claim on the policy only once: the insured dies or the policy matures only once. It is with just a few particular types of policy (for instance, sickness insurance, when the insured starts working again after a period of sickness) that a valid claim can be made on a lot of different occasions. Alternatively, the general rule in non-life insurance is that the policyholder is liable to be the victim of several losses (in automobile insurance, of course, but also in burglary and fire insurance, householders’ comprehensive insurance, and so on). 2. In the field of life insurance, the amount to be paid by the company­ aside from any bonuses-is decided at the inception of the policy. For the more than a few types of life insurance contracts, the sum payable on death or at maturity of the policy is known in advance. In the field of non-life insurance, the amount of a loss is a random variable: the price of an automobile crash, the partial or totalloss of a building because of fire, the number and nature of injuries, and so on.

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