: Sections 2 and 3 describe the general insurance contract and the bonus hunger strategy of the customers. Section 4 outlines the … function. Section 8 gives some concluding remarks. 2. THE GENERAL INSURANCE CONTRACT Consider an insurance buyer representing a … compensation function of a stan- dard insurance contract with an individual deductible. ¡ Proposition 3 is based on the fact that …

CONTRACT We recapitulate briefly the main features of a general bonus-malus insurance contract as outlined in Holtan (2001 … t > 0. See Holtan (2001) for a more detailed and complete description of bonus-malus effects on an insurance contract … classical treat- ment is as follows: Consider the insurance customer and the insurance contract described in sec- tion 2. Assume …