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Want to be an actuary? Odds are, you’ll fail the test

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221–230 of 349 posts

Re: Want to be an actuary? Odds are, you’ll fail the test

#221
post #151

Earlier quoted context omitted.

> Any proposal to do that in effect makes the police investigation a court of first instance, which either means creating additional procedural rights that apply before it can be completed (driving up costs) or a very real denial of due process. Not nessasarily. The 'additional weight' could still be something that requires a suit to take advantage of directly, but which the threat of compels behavior. For example, m…

>3) Ought to have known you were liable How would that even be defined? Is it just based on the balance of evidence available? We already have something for this. If one party is really obviously guilty, then the other party can call for a summary judgement and skip much of the expensive trial.

Summary judgement applies when the facts not in dispute are sufficient to reach a legal conclusion. If there is a material dispute of facts, no matter how obvious the evidence is, it must go to trial. Further, summary judgement only reduces the cost (for both sides); it does nothing to act as a deterent.

> How would that even be defined?

That depends on how claiment friendly you want to be.

The key piece would be: "based on what the defendant knew when they refused the request for payment". Standard evidenciary rules apply for showing that the defendant knew something. In this case, the key evidence would be a police report and pictures sent to the insurance company, so I don't think there would typically be a dispute here.

The harder part is defining "ought". Courts already have a reasonable person test they apply to other situations. You could also apply the clear and convincing evidence standard to the applicable evidence (or, if you really wanted to, either preponderance or beyond a reasonable doubt).

The real answer is that in this hypothetical the legislature would pass a law, and then the appellate courts will spend decades clarifying the law until the legislature changes it again.

Re: Want to be an actuary? Odds are, you’ll fail the test

#222

Earlier quoted context omitted.

So you don’t think corporations have any responsibility to act ethically?

> responsibility to act ethically They have the opposite responsibility, if anything... They have a fiduciary duty to their shareholders, and considering that the behavior being suggested here would see them quickly run out of business by their less-moral competition, it would probably be a breach of that duty. The solution is to change laws about redress. For example, statutory punitive damages and attorneys' fees i…

>The solution is to change laws about redress. For example, statutory punitive damages and attorneys' fees in lawsuits against insurers where the final judgement is significantly different from the insurer's initial offer.

1. I you're supposed to have negotiated with the counterparty in good faith prior to a lawsuit. If not, that will be looked negatively by the judge. https://www.sbwllp.com/rule-68-offers-of-judgment/

2. This probably doesn't play well with probabilities/statistics. Suppose we accept your proposal, and say any final judgement that's 5x larger than the offered settlement should be hit with extra damages. Now a lawsuit comes along that the insurance company thinks there's a 12.5% chance of winning, and if they win, the damages awarded will realistically be $1M. Based on expected value calculated from the previous facts, and factoring in court/attorney's fees, the insurance company offers the plaintiffs $150k to settle. That seems like a good offer for all parties involved. However, if the plaintiff gets greedy, and on the off chance he wins, the insurance company will have to pay extra damages, because from an initial offer to final judgement perspective the disparity is huge.

Re: Want to be an actuary? Odds are, you’ll fail the test

#223

Earlier quoted context omitted.

I think you mean collision coverage. Comprehensive covers non-collision accidents like theft or a tree falling on your car and is generally cheaper than full coverage which includes collision. It seems like you may have been screwed over, but also don’t completely understand how auto insurance works in most places which might be partly intentional for the industry. In most places damages to your vehicle are covered b…

> You can sue the other driver and their insurance will cover them if necessary, but generally you’re only able to be reimbursed up to a certain amount Well, you are generally (AFAIK, this is true of all US jurisdictions) legally entitled to your full actual damages if the other driver is completely responsible, but they are only required to carry a certain amount of liability insurance (or, alternatively in many cas…

This is incorrect in some states. Some have limits for medical liability and some have limits for property damage liability.

Michigan for example. https://www.michigan.gov/documents/autoinsurance/ip206a_6799...

Beyond that, you should insure yourself sufficiently because you can’t depend on others to have adequate coverage. Doesn’t matter that you can sue if they have no money.

Re: Want to be an actuary? Odds are, you’ll fail the test

#224

Earlier quoted context omitted.

> They are telling the government they will pay out if the insured party is at fault for an accident No, they aren't. They are telling the government and their customer they will pay out if the insured party is found to be legally liable for injury or property damage while driving. (That is, in exactly the situations where the customer would legally be obligated to pay.) They are also telling their customer that they…

In this case, who is legally liable?

No one. It's up to a court to decide. If you haven't been declared liable/guilty by a court, you're not liable/guilty. It's simple as that.

Re: Want to be an actuary? Odds are, you’ll fail the test

#225
For anyone who thinks about doing these, here are a few tips for the advanced CAS exams.

- Time is your enemy. - Use memorization techniques, like a memory palace. - Grader are looking for key words, be succinct. - If you do not know, skip. Your brain will figure it out while you work other questions. - Create your own study material from the syllabus. Anything that is remotely mathematical will be tested at some point. - Practice being efficient with the tool used to take the exam. Pen or keyboard.

Re: Want to be an actuary? Odds are, you’ll fail the test

#226
post #169

Earlier quoted context omitted.

That's not true though? It's entirely possible to be healthy right up until the moment you die and never get into a situation that a doctor or hospital could help with.

The baby "you" needed health insurance the moment it took it's first breath and let out a shriek of terror due to its suddenly change in circumstances. I know from experience: Until my wife gave birth, all the claims were for here. Once born, hospital bills were partitioned into those for my wife and those for my newborn.

Plenty of people are born at home and don't receive any particular medical treatment. Of course there are risks to that, but it's hardly unheard of.

Re: Want to be an actuary? Odds are, you’ll fail the test

#227
post #219
post #149

Earlier quoted context omitted.

When we bought our house, after our down payment and on our way to closing I asked a question to the escrow/title insurance person: * the disclosures show two slightly different figures for the dimensions of the lot, which one is it? (County mapped shows Width W and another owner provided map showed W-1ft or something like that) Instead of doing anything to try to figure it out, this title insurance company (also doi…

The state of that industry is absolutely incredible to me. Throughout the whole home purchase process all I can see is people trying to cover their ass and do the absolute minimum amount of work possible. I understand that they want to avoid getting sued, but the whole process (sell side agency, brokerage, buy side agency, title, home insurance, financing, escrow, whatever) is just agonizing every step of the way. I…

It's actually a much "safer" process for buyers and sellers today...there actually used to be greater integration in the past, but a lot of that went away in order to protect consumers. Regarding fees - when you actually break down the cost of a home sale, the fees really aren't much. On the sell side in particular, that commission should be irrelevant if the listing agent was doing their job, IE: marketing your property in a way to get you a top dollar return. Likewise, from the perspective of the buyer - the NAR / DOJ lawsuit could result in a scenario where the buyer pays an agent commission directly, rather than via the closing settlement, but I guarantee we do not want to be living in that world - it's a case where the current system might seem bad, but it's better than the alternatives. Would love to chat sometime if you have thoughts on the industry.

As much as I love my clients... there are very few who are "easy" in the same way that there are very few "normal" transactions - this is where Zillow et. al. just don't understand the realities of real estate.

Re: Want to be an actuary? Odds are, you’ll fail the test

#228
post #81

Earlier quoted context omitted.

> it should be provided by the state and paid for with taxes / annual registration fees The free market is required to accurately price the risk for each driver. A 45 year old female driver with no infractions is much less risk than an 18 year old male with a DUI, so the former should pay less in premiums. The current system is doing that. I do not see how a state-provided solution would come up with "accurate" prici…

A government entity could perform this, no free market required. See residential flood insurance for a government based risk rating example.

You mean the same policy that resulted in a whole bunch of people living in flood zones? And which we can't get them to leave because it would be politically unpopular to raise their insurance premiums to reflect their actual risk? That seems more like an example of exactly why we don't want the government -- which inevitably means politicians -- setting insurance rates.

Re: Want to be an actuary? Odds are, you’ll fail the test

#229
post #103

Earlier quoted context omitted.

British Columbia forces you to buy liability insurance from the provincial government and it's awful. The premium calculations are illogical and inefficient. Bad drivers are subsidized by good ones, the rates are among the highest in the country and the govt manages to lose money on it. My experience in other provinces with private insurance companies was much better.

> The premium calculations are illogical and inefficient. Bad drivers are subsidized by good ones Good drivers subsidizing bad ones is the entire concept of an insurance pool. The corrective mechanism is that if a driver reveals themselves to be bad enough, you make them stop driving.

No, it's not. The premise of an insurance pool is that the lucky subsidize the unlucky. Differences in premiums are supposed to account for good vs bad.

Re: Want to be an actuary? Odds are, you’ll fail the test

#230
post #75

Earlier quoted context omitted.

The joke there is that every driver in the US still needs to carry uninsured driver insurance because so many don't have any and there are no checks. And of course the coverage minimums are utterly laughable; put a kid in a wheelchair and you are looking at many many millions of damage, $100k isn't gonna cut it.

I watched a four-tone college Corolla rear-end a metallic fleck baby blue Bentley being driven from N to S Austin. Since I was stuck there (caught in the pileup, but undamaged), I chatted with the valet. He said that the Bentley would be totaled -- no purchaser would take it, obviously. He said the dealer insurance would handle the whole thing; there was simply no point in even calling the kid's insurance: the car wa…

That seems silly given that the cost of the phone call is surely orders of magnitude less than the insurance payout. What kind of business is going to forgo a four or five figure check like that?
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