ABSTRACT
This chapter discusses the classical “standard” Cramér-Lundberg (“C-L”) risk model, which tracks the insurer's risk reserve fund (aka “surplus”) up to the time of ruin, i.e., when the risk reserve drops to level zero or less. The chapter also studies a variant of it. The variant introduces a “dividend barrier” and extends the active time period beyond the first ruin time, by restarting the process from the same initial risk reserve amount, repeatedly.
