a statement in the auditor's report of a company's annual accounts indicating a fundamental disagreement with the company to such an extent that the auditor considers the accounts misleading
This paper evaluates the extent of adverse selection in life insurance and annuities in international markets. We examine the extent of adverse selection in group and individual life insurance. In addition we also compare results with prior analyses of adverse selection in international annuity markets, focusing on the US.Our results...
An adverse event can be defined as "An unintended injury caused by medical management rather than a disease process, resulting in death, life threatening illness, disability at the time of discharge, admission to hospital, or prolongation of hospital stay." A medical or surgical misadventure is an adverse event that might...
Retrospective studies of hospital case records in the United States and Australia have shown a substantial rate of adverse events, defined as unintended injuries caused by medical management rather than the disease process. The Harvard medical practice study found that 3.7% of hospital admissions led to adverse events. In 70%...
While the majority of statements of actuarial opinion regarding loss reserves are relatively straightforward, occasionally the actuary is confronted with atypical situations. These situations may include financially distressed or insolvent companies, ceded reinsurance collectibility issues, significant influence of a small group of claims, items requiring the disclosure of a significant...
A risk is something that may happen and if it does, will have an adverse impact on the project. A few points here - "that may happen" implies a probability of less then 100%. If it has a probability of 100% - in other words it will happen - it...
On May 30, 2002 the Texas Supreme Court rendered an opinion in King v. Dallas Fire Ins. Co., 2002 WL 1118438 (Tex. 2002). The court, in a unanimous opinion, held that coverage existed for derivative liability claims against an employer, where the employee's conduct was intentional. This article explores the...
This paper examines the results of large-scale randomized trials in pre reproved credit card solicitations for direct evidence of adverse selection. Four basic conclusions are reached. First, there is clear evidence of adverse selection on observable information, Second, comparing the customer pools resulting from different offers, Third, evidence of adverse...
There are only three ways a public relations effort can impact behavior: create opinion where it doesn't exist, reinforce existing opinion, or change that opinion. While behavior is the goal, and a host of communication tactics are the tools, our strategy is the leverage provided by public opinion. Public relations...
Theoretical models predict asymmetric information in health insurance markets may generate inefficient outcomes due to adverse selection and moral hazard. However, previous empirical research has found it difficult to disentangle adverse selection from moral hazard in health care. The authors empirically study this question by using data from the Health...
This paper investigates a possible predictor of adverse selection problems in unsubsidized "standalone" prescription drug insurance: the persistence of an individual's high spending over multiple years. Using MEDSTAT claims data and data from the Medicare Survey of Current Beneficiaries, the paper finds that persistence is much higher for outpatient drug...
A doctor might tell people that they need surgery for a health problem that isn't an emergency. This means that the surgery doesn't have to be done right away. They have time to talk with their doctor and decide what's best for them. Deciding what is best for them could...
This paper evaluates the extent of adverse selection in life insurance and annuities in international markets, for both group and individual products. The results help assess the extent to which life insurers can hedge mortality exposure by writing both life insurance and annuities, and they may be used to determine...
This article is about Merger agreements which normally provide MAC Material Adverse Changes protections for the buyer and sometimes for the target as well. The merger agreement typically is drafted to permit one or either party to terminate the transaction if a MAC has occurred with respect to the...
From the executive summary: ‘Under Generally Accepted Auditing Standards GAAS, the fourth standard of reporting requires that an auditor, at the conclusion of an audit, either express an opinion regarding the financial statements, taken as a whole, or issue a disclaimer of opinion.’ Researches indicate that a disclaimer of opinion...
In 2002 Pennsylvania became the first state to impose on hospitals a statutory duty to notify patients in writing of a serious event. If the disclosure conversations are carefully planned, properly executed, and responsive to patients' needs, this new requirement creates possible benefits for both patient safety and litigation risk...
With manually compiled data on a large sample of deals announced between 1994 and 2003, one empirically examines the role and effects of fairness opinions in mergers and acquisitions. Approximately 95% of deals have at least one fairness opinion on the target side, while 70% of deals have one or...
The news cycle is dead. Long live "The Opinion Cycle." So says Lee Ann Schreiber, ombudsman for ESPN. In a terrific piece on ESPN.com, Schreiber dissects various sports "controversies" and concludes that a) very little actual reporting was done but b) tons of opinions were spewed. ...
In September 2000, two instances of life-threatening hepatotoxicity were reported in health-care workers taking nevirapine NVP for postexposure prophylaxis PEP after occupational human immunodeficiency virus HIV exposure. This report summarizes the results of that analysis and indicates that healthy persons taking abbreviated 4-week NVP regimens for PEP are at risk...
This paper explores the significance of unobservable default risk in mortgage and automobile loan markets. It develops and estimates a two-period model that allows for heterogeneous forms of simultaneous adverse selection and moral hazard. Controlling for income levels, loan size and risk aversion, It finds robust evidence of adverse selection,...
This paper emphasizes the adverse event categorization principle in risk acceptance analysis, and suggests the use of a standard type risk profile of lognormal type for each category of adverse events in case of oil spill. It is shown that there is a specific mathematical form of the risk profiles...
