Minimum Asset Requirements and Compulsory Liability Insurance as Solutions to the Judgment-Proof Problem

Minimum asset requirements and compulsory liability insurance as solutions to the judgment-proof problem

Minimum asset and liability insurance requirements must often be met in order for parties to participate in potentially harmful activities. Such financial responsibility requirements may improve parties’ decisions whether to engage in harmful activities and, if so, their efforts to reduce risk. However, the requirements may undesirably prevent some parties with low assets from engaging in activ...

Review of Employers’ Liability Compulsory Insurance

The Judgment Proof Problem

Parties who cause harm to others may sometimes turn out to be ‘judgment proof,’ that is, unable to pay fully the amount for which they have been found legally liable.’ This possibility is an important and realistic one. Certainly individuals may readily be imagined to cause personal injury or property damage resulting in judgments that exceed their assets plus any liability insurance coverage; ...

The Lunar Dust Problem: From Liability to Asset

In-Situ Resource Utilization (ISRU) of lunar materials for the establishment of an extra-terrestrial human base or settlement will involve guarding against, as well as utilizing, the ever-present, clinging, penetrating, abrasive, resource-rich, fine-grained lunar dust. The properties of the fine portion of the lunar soil (<50 μm), its dust, must be adequately addressed before any sustained pres...

Duration of Life Insurance Liabilities and Asset Liability Management

The scope of this paper is to analyse duration as a risk measure of life insurance liabilities from traditional life insurance products using a simple model to assess the problem. First, the liabilities are defined. Then the concept of Macauley duration as a measure for interest rate risk with respect to life insurance liabilities is derived. This concept is discussed with respect to its useful...