Which of the following statements about the regulation of life insuran

Which of the following statements about the regulation of life insurance companies is (are) true?

I. The percentage of assets a life insurance company may invest in a specific type of asset (e.g., stocks or bonds) is generally limited by law.
II. The purpose of limiting the accumulation of surplus is to prevent an insurer from increasing its surplus at the expense of policyowner dividends.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: C