My Own Insurance Company

1.  Your insurance company must do business in four contiguous states. (Contiguous means that each state has to touch at least one other state, e.g., Maine, New Hampshire, Vermont, New York. Maine doesn't have to touch New York in this example. But it touches New Hampshire, which touches Vermont, which touches New York. So those four states are contiguous.)

2.  California cannot be one of your states.

3.  You have to write 12 insurance policies. You must write at least two policies in each state.

4.  You have to write three kinds of insurance: homeowners, automobile and business workers' compensation. You must write at least one kind of insurance in each state.

On one hand, you want to do business in an affluent, economically strong areas. Higher payrolls, more expensive homes and more expensive cars will boost your revenues.

On the other hand, think about avoiding catastrophe. Situate your company so that you can maximize revenues while avoiding large losses, including hurricane, earthquake, flood, tornado, hail and winter storm.

List the four states and your product mix. Then tell us WHY you made those choices

Here’s an example:

Ohio - 1 automobile, 1 homeowners, 1 business workers’ compensation Michigan - 1 automobile, 1 homeowners, 1 business workers’ compensation Illinois - 3 business workers’ compensation

Indiana - 3 business workers’ compensation

I chose a balanced spread of product mix in Ohio and Michigan. But in order to avoid large-scale winter storm exposure, I chose to avoid auto and homeowners in Indiana and Illinois, and instead focused on work comp in those two states.