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1996

Series

Honors Projects

Articles 1 - 4 of 4

Full-Text Articles in Business

A Solution To The Shortage Of Capital In The Property Insurance Industry, Amy Gebauer '96 Apr 1996

A Solution To The Shortage Of Capital In The Property Insurance Industry, Amy Gebauer '96

Honors Projects

Due to the recent increase in the severity and frequency of natural catastrophes, insurers believe that insured losses from such catastrophes can exceed $50 billion. There is not enough capital available in the insurance industry to cover such catastrophic losses. Therefore, insurers have begun looking for new sources of capital. The most promising solution is in the capital market, specifically in catastrophe insurance options. The options have a settlement index, which is the market's estimate of the losses for the covered quarter. While these options have advantages as well as disadvantages over reinsurance. The main problem hindering the market is …


A Different Approach To Term Vs. Whole Life Insurance, Neil Rubenstein '96 Jan 1996

A Different Approach To Term Vs. Whole Life Insurance, Neil Rubenstein '96

Honors Projects

This is study comparing term to whole life insurance. These two life insurance vehicles will be compared using the after-tax dollar figure of the surrender value or death benefit (for the whole life policy) and the total after-tax value of the "difference" and/or death benefit (for the term life insurance policy). These comparisons are not intended to be used to extrapolate the average rate of return needed in the future to justify the extra risk inherent in term life insurance.


The Role Of The Pbgc In Pension Guarantees: An Analysis Of Efficiency And Effectiveness, Jason C. Richards '96 Jan 1996

The Role Of The Pbgc In Pension Guarantees: An Analysis Of Efficiency And Effectiveness, Jason C. Richards '96

Honors Projects

The retirement-income system in the average American household can be described as a three-legged combination of private and government savings. The first leg includes Social Security and other government welfare programs designed for the elderly. The second is individual savings. This leg includes IRA's, savings accounts and stock and bond portfolios, among other things. The final leg includes Privately-sponsored pension plans (Schmitt, 1993). In simplest terms, there exist two types of pension plans in the United States: defined-contribution and defined-benefit. For general information --as well as later discussion --we will now define both.


Accounting For Derivatives, Craig Ward '96 Jan 1996

Accounting For Derivatives, Craig Ward '96

Honors Projects

This paper will address the issue of disclosure concerning the derivative acitivities of publicly traded companies. The paper will begin by explaining the basics of derivatives and proceed to explain the current requirements in place to date. It will also detail the current developments of proposed new regulations for derivative activities. Then, the paper will present the results of how a sample of publicly traded companies currently account for and report their derivative positions in the financial statements. Finally, I will propose new requirements to account for and report derivatives in the financial statements. These requirements will combine ideas already …