Hoy, Michael; Mirza, Afrasiab; Sadanand, Asha B. - 2018
Guaranteed renewability is a prominent feature in many health and life insurance markets. It is well established in the … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …