DREXEL BLAW201 WEEK 3 AND WEEK 4 DISCUSSIONS

A new trend is emerging in health insurance: premium increases based on claims. It is common practice in the auto insurance industry, for example, for insurers to revisit your premium each year and adjust it based on factors such as your driving record or number of accidents. However, health insurers have generally evaluated their insured’s health only once, at the outset, when issuing a policy.The reevaluation of health and premiums was a practice that ended in the 1950s because the insurers feared regulators would impose limitations on premiums. At least one health insurer, however, has begun to evaluate the health of its insureds annually and to adjust policy premiums accordingly. Even without examination of insureds, some insurers have increased the insureds’ premiums based simply on the nature of their claims for the year and the possibility that more claims will arise.

Those who are healthy are in favor of this annual review. Perceiving themselves as the equivalent of good drivers, they want to pay less when they stay healthy. The health discount is, in their minds, the equivalent of the safe driver discount. However, those who are less healthy argue that people buy insurance so that it will be there when they need it, and the coverage should apply without regard to claims. Consider the ethical issues in this type of pricing for health insurance. (Post is due before 11PM Friday.)

week 4

Blake, who had been diagnosed with Alzheimer’s disease, sold and conveyed two acres of land to Khron, who paid $14,000.At the time of the sale and conveyance, Blake appeared to be competent and Khron had no knowledge of Blake’s illness.One year later, Blake died.During the prior year, Blake had spent the $14,000 received from Khron.The executrix of Blake’s estate sued Khron to set aside the deed and recover the land conveyed to Khron.The executrix made no offer to pay $14,000 to Khron.Will the executrix succeed?Suppose it was shown that Khron knew about Blake’s condition at the time of the sale and conveyance of the land.Would this affect your answer?(Post is due before 11 PM Thursday.)

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Leonetti offered to sell Salazar her car and told Salazar that the car had been driven only 25,000 miles and had never been in an accident.Salazar hired Cavanaugh, a mechanic, to appraise the condition of the car, and Cavanaugh said that the car probably had more than 25,000 miles on it and probably had been in an accident.In spite of this information, Salazar still thought the car would be a good buy for the price, so he purchased it.Later when the car developed numerous mechanical problems, Salazar sought to rescind the contract on the basis of Leonetti’s fraudulent misrepresentation of the auto’s condition.Will Salazar be able to rescind his contract?Explain.(Post is due before 11 PM Friday.)

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