Thursday, April 18, 2013

Reporting a Lost Item

It is quite troublesome for the owner of a lost item to file a report. Here is an easy and centralized way to deal with this problem.

Tuesday, April 16, 2013

Recommendations of the FAIR Panel

I like two recommendations of the FAIR Panel but am disappointed with their decision not to cap the commission on life insurance products. Overall - it s a THUMBS DOWN.

Short Essay Answer (2)

Here is an example of how to a suitable short essay answer. It shows the importance of having a short introduction or explanation of the question and provide the answer by explaining a few focused points. I hope that this is useful for students taking the examination.

Suppose that laws were passed that required insurers to charge everyone the same premium for health insurance regardless of age or health status. What effect would that have on the market for health insurance?

It is usual for the insurer to charge different premium rates for health insurance according to the age or health status, as they contribute to different expected claims. If laws were passed that require insurers to charge the same premium rate, the likely outcome would be:

1. The low risk people will be subsidizing the high risk people.
2. If health insurance is not compulsory, the low risk people will probably decide not to buy insurance
3. The insurance pool will comprise mainly of high risk people with high expected claims
4. The premium rate will increase for the pool.
5. If the premium is too high, the high risk people cannot afford the insurance. The market for health insurance will fall.

Short essay answers

Over the years, I have marked short essay answers for a final examination. Here are the tips to students on how to get better marks. 
1. Write neatly. 
2. Introduce the question briefly, before you write the answer
3. Focus on a few points and write your answer. 

Here is an example:
Question - What factors are most likely to cause differences in term insurance rates for individuals of the same age.

Answer -
Term insurance pays the sum assured in the event of death of the insured during the period of insurance. The factors that are likely to cause differences in insurance rates for insurances of the same age are:

1. gender, females pay less
2. occupation, low risk occupations pay less
3. health status, healthy peoples pay less
4. smoking habits, non-smokers pay less.

This will give you full 3 marks.

The length of the answer depends on the marks given. Most questions with similar marks should contain about the same length in reply. If you have fewer points, explain slightly more. If you have more points, explain slightly less.

Hope that this is useful for undergraduates preparing for your examinations.

Monday, April 15, 2013

Passing a law

The laws and regulations that are passed are intended to tell people what is right and what is wrong, in law. They may deter most law abiding people, although there will be crooks that will continue to run foul of the law. The possibilities of these crooks should not discourage us from passing the laws.

Recently, I suggested that foreigners who intend to work in Singapore should be required to apply directly for a work pass and be responsible personally for the authenticity of the degrees that they submit. If the degrees are found to be faked, they can be sent to jail or be repatriated immediately.

Currently, the Ministry of Manpower require the employer to submit the papers, so the responsibility is not clear.

Someone replied that the requirement will not work. He quoted the death penalty for drug traffickers, which still does not deter some people from engaging in it.

This is an example of the type of thinking that is quite prevalent in Singapore. He expects the law to work in every case, if not, do not pass the law. I have described this as "thinking only in black and white".

We need to pass the law to make it clear that giving false information is an crime, that comes with severe penalties. We do not expect the law to stop all the abuses. Let the court decide on how to deal with the abuse, when a person is charged.

Blog Archive