The regulation and structure of nonlife insurance in the United States

The insurance industry is underdeveloped in most developing countries because of low levels of income and wealth and because restrictive regulations inhibit the supply of insurance services. But several countries have begun to reform their insurance industries. To help those countries, the authors offer an overview of insurance regulation in the United States - and discuss the economics and market structure of nonlife insurance in entry and exit barriers, economies of scale, and conduct and performance studies. They conclude that the U.S. nonlife insurance industry exhibits low concentration at both national and state market levels. Concentration is low even on a line-by-line basis. The primary concern of regulators has been to protect policyholders from insolvency, but regulation has also often been used to protect the market position of local insurance companies against the entry of out-of-state competitors. Regulation has worked best when based on solvency monitoring, with limited restrictions on entry. It has been more harmful when it involved controls on premiums and products and on the industry's level of profitability. Over the years the industry has shown a remarkable degree of innovation, although it has also faced many serious and persistent problems. The problems include the widespread crisis in liability (including product liability and medical malpractice), the crisis in automobile insurance, the volatility of investment income, the effects of market-driven pricing and underwriting cycles, and the difficulty of measuring insurance solvency. The long-tailed lines of insurance - those that entail long delays in final settlements - are exposed to the vagaries of inflation and rising costs. Two mandatory lines - third party automobile insurance and workers'compensation (for work accidents) - account for nearly 55 percent of premiums. These two lines - plus medical malpractice, other liability, and aircraft insurance - had combined ratios well over 125 percent in 1989. The industry has some ability to collude and to set prices, but seems to be competitive and to earn profits below similarly situated financial firms. Insurance profitability is not consistently above or below normal returns, although earnings for mandatory and strictly regulated lines of automobile insurance and workers'compensation appear to be below-adequate for long-term viability.Insurance&Risk Mitigation,Non Bank Financial Institutions,Insurance Law,Environmental Economics&Policies,Financial Intermediation

Optimization as an analysis tool for human complex decision making

We present a problem class of mixed-integer nonlinear programs (MINLPs) with nonconvex continuous relaxations which stem from economic test scenarios that are used in the analysis of human complex problem solving. In a round-based scenario participants hold an executive function. A posteriori a performance indicator is calculated and correlated to personal measures such as intelligence, working memory, or emotion regulation. Altogether, we investigate 2088 optimization problems that differ in size and initial conditions, based on real-world experimental data from 12 rounds of 174 participants. The goals are twofold. First, from the optimal solutions we gain additional insight into a complex system, which facilitates the analysis of a participant’s performance in the test. Second, we propose a methodology to automatize this process by providing a new criterion based on the solution of a series of optimization problems. By providing a mathematical optimization model and this methodology, we disprove the assumption that the “fruit fly of complex problem solving,” the Tailorshop scenario that has been used for dozens of published studies, is not mathematically accessible—although it turns out to be extremely challenging even for advanced state-of-the-art global optimization algorithms and we were not able to solve all instances to global optimality in reasonable time in this study. The publicly available computational tool Tobago [TOBAGO web site https://sourceforge.net/projects/tobago] can be used to automatically generate problem instances of various complexity, contains interfaces to AMPL and GAMS, and is hence ideally suited as a testbed for different kinds of algorithms and solvers. Computational practice is reported with respect to the influence of integer variables, problem dimension, and local versus global optimization with different optimization codes

One Dimensional Kondo Lattice Model Studied by the Density Matrix Renormalization Group Method

Recent developments of the theoretical investigations on the one-dimensional Kondo lattice model by using the density matrix renormalization group (DMRG) method are discussed in this review. Short summaries are given for the zero-temperature DMRG, the finite-temperature DMRG, and also its application to dynamic quantities. Away from half-filling, the paramagnetic metallic state is shown to be a Tomonaga-Luttinger liquid with the large Fermi surface. For the large Fermi surface its size is determined by the sum of the densities of the conduction electrons and the localized spins. The correlation exponent K_rho of this metallic phase is smaller than 1/2. At half-filling the ground state is insulating. Excitation gaps are different depending on channels, the spin gap, the charge gap and the quasiparticle gap. Temperature dependence of the spin and charge susceptibilities and specific heat are discussed. Particularly interesting is the temperature dependence of various excitation spectra, which show unusual properties of the Kondo insulators.Comment: 18 pages, 23 Postscript figures, REVTe

Circadian Plasticity in Photoreceptor Cells Controls Visual Coding Efficiency in Drosophila melanogaster

In the fly Drosophila melanogaster, neuronal plasticity of synaptic terminals in the first optic neuropil, or lamina, depends on early visual experience within a critical period after eclosion [1]. The current study revealed two additional and parallel mechanisms involved in this type of synaptic terminal plasticity. First, an endogenous circadian rhythm causes daily oscillations in the volume of photoreceptor cell terminals. Second, daily visual experience precisely modulates the circadian time course and amplitude of the volume oscillations that the photoreceptor-cell terminals undergo. Both mechanisms are separable in their molecular basis. We suggest that the described neuronal plasticity in Drosophila ensures continuous optimal performance of the visual system over the course of a 24 h-day. Moreover, the sensory system of Drosophila cannot only account for predictable, but also for acute, environmental changes. The volumetric changes in the synaptic terminals of photoreceptor cells are accompanied by circadian and light-induced changes of presynaptic ribbons as well as extensions of epithelial glial cells into the photoreceptor terminals, suggesting that the architecture of the lamina is altered by both visual exposure and the circadian clock. Clock-mutant analysis and the rescue of PER protein rhythmicity exclusively in all R1-6 cells revealed that photoreceptor-cell plasticity is autonomous and sufficient to control visual behavior. The strength of a visually guided behavior, the optomotor turning response, co-varies with synaptic-terminal volume oscillations of photoreceptor cells when elicited at low light levels. Our results show that behaviorally relevant adaptive processing of visual information is performed, in part, at the level of visual input level

Role of tip structure and surface relaxation in atomic resolution dynamic force microscopy: CaF2(111) as a reference surface

By combining experimental dynamic scanning force microscope (SFM) images of the CaF2(111) surface with an extensive theoretical modeling, we demonstrate that the two different contrast patterns obtained reproducibly on this surface can be clearly explained in terms of the change of the sign of the electrostatic potential at the tip end. We also present direct theoretical simulations of experimental dynamic SFM images of an ionic surface at different tip-surface distances. Experimental results demonstrate a qualitative transformation of the image pattern, which is fully reproduced by the theoretical modeling and is related to the character of tip-induced displacements of the surface atoms. The modeling of the image transformation upon a systematic reduction of the tip-surface distance with ionic tips allows an estimate of the tip-surface distance present in experiment, where 0.28–0.40 nm is found to be optimal for stable imaging with well-defined atomic contrast. We also compare the modeling with ionic tips to results for a pure silicon tip. This comparison demonstrates that a silicon tip can yield only one type of image contrast and that the tip-surface interaction is not strong enough to explain the image contrast observed experimentally. The proposed interpretation of two types of images for the CaF2(111) surface can also be used to determine the chemical identity of imaged features on other surfaces with similar structure.Peer reviewe

Augustine State: The Information Technology Component of Going Online

Finding cases appropriate for teaching information technology courses is a persistent problem for instructors. This article is written as a teaching case and is intended for use by instructors in educating students about information technology. The case information is factual and deals with genuine information technology situations at a real-world educational institution. The case offers the opportunity to generate student discussion in the areas of corporate and IT governance, IT infrastructure, IT architecture, open source software, outsourcing and other topics

Transient and Highly Polarized Double-Peaked H-alpha Emission in the Seyfert 2 Nucleus of NGC 2110

We have discovered an extremely broad, double-peaked H-alpha emission line in the polarized flux spectrum of NGC 2110, establishing that this well-studied Seyfert 2 galaxy contains a disk-like hidden broad-line region (BLR). Several properties of NGC 2110 suggest that it is an obscured twin of Arp 102B, the prototypical double-peaked emission-line active galactic nucleus (AGN). A comparison between our data and previous spectra of NGC 2110 indicates that the double-peaked H-alpha feature is transient. The presence of a disk-like BLR in NGC 2110 has important implications for AGNs: it expands the range of properties exhibited by Seyfert 2 galaxies, and the fact that the BLR is obscured by a torus-like structure provides the first evidence that double-peaked emitters and classical Seyfert nuclei may have the same basic parsec-scale geometry.Comment: 5 pages, including 3 postscript figures. Uses emulateapj. Accepted for publication in ApJ Letter

Investigating Atomic Details of the CaF2_2(111) Surface with a qPlus Sensor

The (111) surface of CaF$_2$ has been intensively studied with large-amplitude frequency-modulation atomic force microscopy and atomic contrast formation is now well understood. It has been shown that the apparent contrast patterns obtained with a polar tip strongly depend on the tip terminating ion and three sub-lattices of anions and cations can be imaged. Here, we study the details of atomic contrast formation on CaF$_2$(111) with small-amplitude force microscopy utilizing the qPlus sensor that has been shown to provide utmost resolution at high scanning stability. Step edges resulting from cleaving crystals in-situ in the ultra-high vacuum appear as very sharp structures and on flat terraces, the atomic corrugation is seen in high clarity even for large area scans. The atomic structure is also not lost when scanning across triple layer step edges. High resolution scans of small surface areas yield contrast features of anion- and cation sub-lattices with unprecedented resolution. These contrast patterns are related to previously reported theoretical results.Comment: 18 pages, 9 Figures, presented at 7th Int Conf Noncontact AFM Seattle, USA Sep 12-15 2004, accepted for publication in Nanotechnology, http://www.iop.or

Bayesian Phylogenetic Estimation of Clade Ages Supports Trans-Atlantic Dispersal of Cichlid Fishes

Divergence-time estimation based on molecular phylogenies and the fossil record has provided insights into fundamental questions of evolutionary biology. In Bayesian node dating, phylogenies are commonly time calibrated through the specification of calibration densities on nodes representing clades with known fossil occurrences. Unfortunately, the optimal shape of these calibration densities is usually unknown and they are therefore often chosen arbitrarily, which directly impacts the reliability of the resulting age estimates. As possible solutions to this problem, two nonexclusive alternative approaches have recently been developed, the "fossilized birth-death" (FBD) model and "total-evidence dating." While these approaches have been shown to perform well under certain conditions, they require including all (or a random subset) of the fossils of each clade in the analysis, rather than just relying on the oldest fossils of clades. In addition, both approaches assume that fossil records of different clades in the phylogeny are all the product of the same underlying fossil sampling rate, even though this rate has been shown to differ strongly between higher level taxa. We here develop a flexible new approach to Bayesian age estimation that combines advantages of node dating and the FBD model. In our new approach, calibration densities are defined on the basis of first fossil occurrences and sampling rate estimates that can be specified separately for all clades. We verify our approach with a large number of simulated data sets, and compare its performance to that of the FBD model. We find that our approach produces reliable age estimates that are robust to model violation, on par with the FBD model. By applying our approach to a large data set including sequence data from over 1000 species of teleost fishes as well as 147 carefully selected fossil constraints, we recover a timeline of teleost diversification that is incompatible with previously assumed vicariant divergences of freshwater fishes. Our results instead provide strong evidence for transoceanic dispersal of cichlids and other groups of teleost fishes. [Bayesian inference; calibration density; Cichlidae; fossil record; marine dispersal; phylogeny; relaxed molecular clock]

The Lick AGN Monitoring Project 2011: Dynamical Modeling of the Broad Line Region in Mrk 50

We present dynamical modeling of the broad line region (BLR) in the Seyfert 1 galaxy Mrk 50 using reverberation mapping data taken as part of the Lick AGN Monitoring Project (LAMP) 2011. We model the reverberation mapping data directly, constraining the geometry and kinematics of the BLR, as well as deriving a black hole mass estimate that does not depend on a normalizing factor or virial coefficient. We find that the geometry of the BLR in Mrk 50 is a nearly face-on thick disk, with a mean radius of 9.6(+1.2,-0.9) light days, a width of the BLR of 6.9(+1.2,-1.1) light days, and a disk opening angle of 25\pm10 degrees above the plane. We also constrain the inclination angle to be 9(+7,-5) degrees, close to face-on. Finally, the black hole mass of Mrk 50 is inferred to be log10(M(BH)/Msun) = 7.57(+0.44,-0.27). By comparison to the virial black hole mass estimate from traditional reverberation mapping analysis, we find the normalizing constant (virial coefficient) to be log10(f) = 0.78(+0.44,-0.27), consistent with the commonly adopted mean value of 0.74 based on aligning the M(BH)-{\sigma}* relation for AGN and quiescent galaxies. While our dynamical model includes the possibility of a net inflow or outflow in the BLR, we cannot distinguish between these two scenarios.Comment: Accepted for publication in ApJ. 8 pages, 6 figure