Finance

The National Association of Insurance Commissioners (NAIC) administers

The National Association of Insurance Commissioners (NAIC) administers an “early warning system” to help ensure insurance company solvency. This system uses data provided in the annual statement to identify companies that may pose a solvency risk. This early warning system is called A) the risk-based capital requirements. B) an insurance guaranty fund. C) the Insurance […]

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Date: September 19th, 2020

The number of title insurance companies operating in State Z is relati

The number of title insurance companies operating in State Z is relatively low. Recently, the largest of these companies (50 percent market share) acquired the second largest company (30 percent market share). Immediately after the acquisition, the insurer raised premiums by 75 percent. This scenario demonstrates which of the following rationales for the regulation of […]

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Date: September 19th, 2020

Which of the following is a principal method of ensuring the solvency

Which of the following is a principal method of ensuring the solvency of insurers? A) requiring submission of annual financial statements to state regulators B) tracking and investigating market conduct complaints against insurers C) disciplining agents of the insurer for illegal sales practices D) regulating the forms (applications and policies) employed by the insurer   […]

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Date: September 19th, 2020

Which of the following statements concerning the proposed optional fed

Which of the following statements concerning the proposed optional federal charter for life insurers is (are) true? I. Large insurers operating in many states would more likely prefer a state charter while smaller, regional, insurers would more likely choose a federal charter. II. Proponents of the federal charter argue that it would speed the development […]

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Date: September 19th, 2020

Which of the following statements is (are) true regarding the quality

Which of the following statements is (are) true regarding the quality of insurance regulation? I. The quality of insurance regulation is uniform from state to state. II. All evidence suggests federal regulation of insurance would improve the quality of regulation. A) I only B) II only C) both I and II D) neither I nor […]

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Date: September 19th, 2020

Which of the following is an advantage of state regulation of insuranc

Which of the following is an advantage of state regulation of insurance over federal regulation of insurance? A) uniformity of laws B) greater efficiency C) more effective in negotiating international agreements pertaining to insurance D) quicker response to local insurance problems     ANSWER Answer: D

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Date: September 19th, 2020

The regulation of insurers in areas that affect consumers, which inclu

The regulation of insurers in areas that affect consumers, which include claims handling, underwriting, complaints, advertising, sales practices, and other trade practices is called A) solvency surveillance. B) market conduct regulation. C) combined ratio analysis. D) market share regulation.     ANSWER Answer: B

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Date: September 19th, 2020