"Chubb Extends Family Protection: Coverage for Kidnapping, Carjacking, Other Crimes To Be Rolled Out Nationally", WSJ October 23, 2002.
What would adverse selection and moral hazard mean with respect to family protection insurance? Who buys this insurance? Is there a significant adverse selection of families who purchase family protection?
This policy is only sold bundled with premium home owner's insurance. Is this important?
Why doesn't Chubb's policy cover ransoms? Explain why this would lead to an incentives / moral hazard problem that could make this coverage less profitable.
[Categories: Adverse Selection, Insurance, Moral Hazard, Price Discrimination (Bundling)]
3:45:32 PM 
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