A mutual insurance diffusion stochastic control problem

This paper determines the optimal loading factor policy of a mutual insurance firm. Insurance is viewed as a collective process of N persons paying fixed (or variable, contingent) premiums and seeking protection against claims. Risk reduction for each person is then exercised through a distribution of risk by aggregating individual risks and by accumulating cash (net of operating expenses) to meet possible contingent claims. By assuming an approximate claims diffusion process, stochastic control problems for selecting the optimum loading factor policies are stated and resolved analytically. In particular, the implicit cost of bankruptcy is computed and an optimum variable-feedback loading policy is established.     

Attention Deficit/Hyperactivity Disorder in the Workplace Under the ADA in the Wake of Sutton and Its Companions

The terms Attention Deficit Disorder (ADD) or Attention Deficit/Hyperactivity Disorder (AD/HD) refer to a neurological impairment that affects the individual's ability to sustain attention and to behave in a calm, rational manner.³Although this disorder has long been considered to be restricted to childhood, recent research has demonstrated that many children carry it over into adult life and take it with them into the workplace. Most U.S. courts have treated AD/HD as a disability covered by the Americans with Disabilities Act (ADA).⁴However, in the summer of 1999, the U.S. Supreme Court made three decisions that will undoubtedly affect the future status of AD/HD and other impairments under the ADA. This article examines those decisions, how they affect the employment rights of AD/HD-afflicted employees, and the changes they will probably bring to litigation in this area. Because we have many reservations about the court's decisions, we not only voice our criticisms of the decisions, but also offer an alternative approach.