Use Of Credit Scores By Insurers Essay Example | Topics and Well Written Essays - 750 words

Use Of Credit Scores By Insurers - Essay Example Rates and premiums are calculated on the basis of your risk level. Many insurers estimate the amount you stand to collect as premium in the event of a loss and charge you a premium amount enough to compensate such claims. If your insurance claims equate to average compared to the credit score, insurers still price the premiums in a manner that profit is earned. Other than the credit history, other factors help in underwriting and pricing of insurance. Some of the factors include the driving history, area of residence, age, gender work history among others. Taking into account all these factors while pricing an insurance cover could be a fair deal. However, consumers should have a better reason to make their credit history healthy. This will better your chances of landing favorable insurance rates and policies. To determine whether or not to offer auto insurance coverage to an individual, insurers often rely on an individual's credit information. Many insurers argue that this informat ion is appropriate in evaluating the possible risks and thereby charging the correct premiums to their clients. However, many states castoff this approach from being used as the sole foundation for cumulating rates, denying, renewing or canceling premiums policies for their clients. Some states forbid the use of these scores in rating premiums and making underwriting decisions. Others require that insurers should inform their clients and applicants of the decisions made while determining their premium in relation to their credit history.

Project management Essay Example | Topics and Well Written Essays - 500 words - 8

Project management - Essay Example (Knapp, B. W., 2010, p.62) CPM is used for analyzing the projects by estimating the longest series of tasks or with those tasks which have least slack by a project network. I prefer it because even after being a traditional technique it is most frequently used in managing the project. (Uher, T. E., 2003, p.38) It has the ability to calculate starting and finish date of the given project, enabling project managers to find out exact dates for every activity and compare what should be happening to what is actually happening and respond accordingly. It has following added advantages over other techniques and methods. My decision for choosing CPM technique was justified once I compared it with other traditional technique, PERT and scheduling analysis technique like critical chain scheduling. Both other techniques have some limitations, like probabilistic nature of PERT, in which estimations are unsure. (Schwalbe, K., 2010, p. 236). Pert lays more stress on the time element while in CPM efforts are made to make optimum use of resources. PERT can only be used on entirely new projects only. (Singla R. K., 2010, p. 283) The Critical Chain approach has stated advantages over the conventional approaches. This approach has its own limitations, like in the scenario where simultaneously different projects are handled using the same resource is not workable, due to loss of resource productivity. (NocêRA, R. D. J., 2013, p.283) While on the other hand CPM can handle multiple projects simultaneously. (Demkin, J. A., 2008, p.733) Critical chain scheduling not a revolutionary approach, fundamentally it is based on CPM theory. (Levine, H. A., 2002, p.89) Another major limitation of Critical Chain Scheduling is that it is expensive to implement, and depending on the project has certain degree of in accuracy as well. (Sebastian N., 2007,