Vaughan.Crisis - Revision history

Graham at 21:57, 25 January 2026

2026-01-25T21:57:55Z

Graham at 21:56, 25 January 2026

2026-01-25T21:56:40Z

Graham at 21:55, 25 January 2026

2026-01-25T21:55:41Z

Graham at 19:12, 26 November 2025

2025-11-26T19:12:01Z

Graham at 19:11, 26 November 2025

2025-11-26T19:11:37Z

Graham at 17:52, 19 January 2025

2025-01-19T17:52:26Z

Graham: /* BattleTable */

2025-01-13T00:29:18Z

‎BattleTable

Graham: /* Why Regulation Fails */

2025-01-11T23:42:51Z

‎Why Regulation Fails

Graham: /* Why Regulation Fails */

2025-01-11T23:28:23Z

‎Why Regulation Fails

Graham at 00:07, 9 January 2025

2025-01-09T00:07:11Z

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 ===Intro===
-There's a fascinating story about an insurance fraudster ''[https://en.wikipedia.org/wiki/Martin_Frankel Martin Frankel]''. He operated during the 1990s in 6 states: Arkansas, Mississippi, Missouri, Oklahoma, Tennessee, and Virginia, and his theft totaled <u>200 million</u>. But the Mississippi DOI was the only regulatory body that noticed the fraud. This is a great example of the value of '''duplication''' in regulation. See ''[https://battleacts6us.ca/vanillaforum6us/discussion/341/martin-frankel this forum post]'' for a link to podcast on this guy.
+There's a fascinating story about an insurance fraudster ''[https://en.wikipedia.org/wiki/Martin_Frankel Martin Frankel]''. He operated during the 1990s in 6 states: Arkansas, Mississippi, Missouri, Oklahoma, Tennessee, and Virginia, and his theft totaled <u>200 million</u>. But the Mississippi DOI was the only regulatory body that noticed the fraud. This is a great example of the value of '''duplication''' in regulation. See ''[https://battleacts.discourse.group/t/martin-frankel/2725 this forum post]'' for a link to podcast on this guy.
 Contrast this with the ''[https://en.wikipedia.org/wiki/Bernie_Madoff Bernie Madoff]'' financial fraud case. In that case, the SEC ''(Securities & Exchange Commission)'' was the relevant regulatory body. The fraud was financial and not specifically insurance and there was no regulatory duplication at the state level as in the Frankel case. Madoff's thievery totaled <u>10 billion</u> before the whole scheme collapsed in on itself.

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 : <span style="color: red;"><sup>'''1'''</sup></span> Parts (a), (b), (c) of this question are really just general knowledge. They are the types of questions where you could take an educated guess and get it right. Part (d) is more specific to the content of this reading.
-: </span> <span style="color: red;"><sup>'''2'''</sup></span> The examiner's report lists "duplication", "peer review", and "peer pressure" as separate answers for strengths of the U.S. regulatory system. This changed for [https://www.battleacts6us.ca/pdf/Exam_(2019_2-Fall)/(2019_2-Fall)_(03).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2019.Fall #3)'''</span> however where all 3 items were considered a single strength. To receive full credit on the 2019.Fall exam, you had to list 2 additional items. In other words what was considered an acceptable answer <u>changed</u>. Please see ''[https://www.battleacts6us.ca/vanillaforum6us/discussion/218/fall-2019-3-c#latest this forum discussion]'' for further details.
+: </span> <span style="color: red;"><sup>'''2'''</sup></span> The examiner's report lists "duplication", "peer review", and "peer pressure" as separate answers for strengths of the U.S. regulatory system. This changed for [https://www.battleacts6us.ca/pdf/Exam_(2019_2-Fall)/(2019_2-Fall)_(03).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2019.Fall #3)'''</span> however where all 3 items were considered a single strength. To receive full credit on the 2019.Fall exam, you had to list 2 additional items. In other words what was considered an acceptable answer <u>changed</u>. Please see ''[https://battleacts.discourse.group/t/fall-2019-3-c/2606 this forum discussion]'' for further details.
 [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=Vaughan&suffix=Crisis&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>

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 [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=Vaughan&suffix=Crisis&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
-&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
+&nbsp;&nbsp;[https://battleacts.discourse.group/c/candidates-6u/vaughan-crisis/188<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
 ==In Plain English!==
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 [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=Vaughan&suffix=Crisis&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span>
-&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
+&nbsp;&nbsp;[https://battleacts.discourse.group/c/candidates-6u/vaughan-crisis/188<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]

← Older revision		Revision as of 19:12, 26 November 2025
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	'''Author''': Vaughan, T. ''(Note that the author's name is spelled incorrectly in the CAS syllabus.)''		'''Author''': Vaughan, T. ''(Note that the author's name is spelled incorrectly in the CAS syllabus.)''
−
−	[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]

	[https://battleacts.discourse.group/c/candidates-6u/vaughan-crisis/188<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]		[https://battleacts.discourse.group/c/candidates-6u/vaughan-crisis/188<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]

← Older revision		Revision as of 19:11, 26 November 2025
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	[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]		[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
		+
		+	[https://battleacts.discourse.group/c/candidates-6u/vaughan-crisis/188<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
		+	[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis ''   (Or click here for Legacy Forum – no longer monitored)''</span>]

	<span style="display: inline-block; background-color: blue; color: white; font-weight: bold; text-align: center; line-height: 50px; width: 50px; height: 50px; border-radius: 50%;">VIDEO</span> → [https://battleacts6us.ca/video/180_Lessons_for_Insurance_Regulation_(v01).mp4 <span style="color: black; font-size: 12px; background-color: aqua; border: solid; border-width: 2px; border-radius: 10px; border-color: aqua; padding: 5px 10px 5px 10px; margin-top: 100px;">'''(4:30) → Lessons for Insurance Regulation - General Overview'''</span>]    ([[Videos \|Click here for all currently available videos.]])		<span style="display: inline-block; background-color: blue; color: white; font-weight: bold; text-align: center; line-height: 50px; width: 50px; height: 50px; border-radius: 50%;">VIDEO</span> → [https://battleacts6us.ca/video/180_Lessons_for_Insurance_Regulation_(v01).mp4 <span style="color: black; font-size: 12px; background-color: aqua; border: solid; border-width: 2px; border-radius: 10px; border-color: aqua; padding: 5px 10px 5px 10px; margin-top: 100px;">'''(4:30) → Lessons for Insurance Regulation - General Overview'''</span>]    ([[Videos \|Click here for all currently available videos.]])

← Older revision		Revision as of 17:52, 19 January 2025
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	[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]		[https://www.battleacts6us.ca/vanillaforum6us/categories/vaughan-crisis<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
		+
		+	<span style="display: inline-block; background-color: blue; color: white; font-weight: bold; text-align: center; line-height: 50px; width: 50px; height: 50px; border-radius: 50%;">VIDEO</span> → [https://battleacts6us.ca/video/180_Lessons_for_Insurance_Regulation_(v01).mp4 <span style="color: black; font-size: 12px; background-color: aqua; border: solid; border-width: 2px; border-radius: 10px; border-color: aqua; padding: 5px 10px 5px 10px; margin-top: 100px;">'''(4:30) → Lessons for Insurance Regulation - General Overview'''</span>]    ([[Videos \|Click here for all currently available videos.]])

	{\| class='wikitable' style='background-color: navajowhite;		{\| class='wikitable' style='background-color: navajowhite;

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 * <span style="color: brown;">'''preventing failure'''</span>
 * miscellaneous facts that also relate to general knowledge: ''causes of insolvency, rate regulation, solvency regulation, RRGs''
 : {| class="wikitable" style="width: ;"

@@ Line 205: / Line 205: @@
 : '''In an ideal fantasy world''':
-:* the regulator has <span style="color: green;">'''perfect'''</span> information ''(score = 100%)''
+:* the regulator has <span style="color: green;">'''perfect'''</span> information ''(information score = 100%)''
-:* the regulator knows <span style="color: green;">'''exactly'''</span> what to do ''(score = 100%)''
+:* the regulator knows <span style="color: green;">'''exactly'''</span> what to do ''(knowledge score = 100%)''
-:* the regulator takes action at <span style="color: green;">'''precisely'''</span> the right time ''(score = 100%)''
+:* the regulator takes action at <span style="color: green;">'''precisely'''</span> the right time ''(action score = 100%)''
 : '''In the messy real world''':
-:* the regulator has <span style="color: red;">'''im'''</span>perfect information ''(score = 30%)''
+:* the regulator has <span style="color: red;">'''im'''</span>perfect information ''(information score = 30%)''
-:* the regulator <span style="color: red;">'''doesn't'''</span> know exactly what to do ''(score = 40%)''
+:* the regulator <span style="color: red;">'''doesn't'''</span> know exactly what to do ''(knowledge score = 40%)''
-:* the regulator takes action <span style="color: red;">'''far too late'''</span> ''(score = 20%)''
+:* the regulator takes action <span style="color: red;">'''far too late'''</span> ''(action score = 20%)''
 The point is that regulators are fallible human beings. Some are better, some are worse, but nobody is perfect. Maybe someone should regulate the regulators? That's not such a crazy idea and it leads to the idea of putting '''checks & balances''' in the regulatory system. We'll discuss that in the next section.

@@ Line 171: / Line 171: @@
 |}
-:: '''definition''': the regulator <span style="color: purple;">'''F'''</span>**ked up, or more politely: ''regulators are human and humans make errors''
+:: '''definition''': the regulator <span style="color: purple;">'''F'''</span>udged it up, or more politely: ''regulators are human and humans make errors''
 ::: ''(includes things like miscalculating IRIS ratios, missing deadlines, losing paperwork, smoking weed in the break room...)''

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 || '''BA Quick-Summary''': <span style="color: green;>'''Lessons for Insurance Regulation'''</span>
-Here we examine how U.S. Insurance Regulation played a part in the 2007/08 financial crisis and what '''changes are needed''' to prevent future issues. It talks about the importance of focusing on systemic risk and having a way to handle big, risky institutions. The article highlights the strengths of the U.S. state-based insurance regulation system, like checks and balances and peer reviews, but also points out that there's room to improve efficiency and coordination among regulators.
+* Here we examine how U.S. Insurance Regulation played a part in the 2007/08 financial crisis and what '''changes are needed''' to prevent future issues. It talks about the importance of focusing on systemic risk and having a way to handle big, risky institutions.
 |}