Finance

To protect policyholders, state laws place limitations on a life insur

To protect policyholders, state laws place limitations on a life insurance company’s investments. The assets backing interest-sensitive products, such as variable life insurance and variable annuities, are not subject to these restrictions. Assets backing interest-sensitive products are placed in a special account called the life insurer’s A) policy reserve account. B) policy loan account. C) […]

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Date: September 19th, 2020

All of the following statements about regulatory objectives of insuran

All of the following statements about regulatory objectives of insurance rate making are true EXCEPT A) One purpose of rate adequacy is to maintain the solvency of insurers. B) Rates unfairly discriminate if loss exposures that are similar with respect to losses and expenses are charged substantially different rates. C) Insurers know in advance if […]

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Date: September 19th, 2020

Which of the following statements about judgment rating is true? A) I

Which of the following statements about judgment rating is true? A) It involves the manual rating of exposures. B) It is used when the loss exposures are so diverse that a class rate cannot be calculated. C) It is a form of experience rating. D) It is only used when credible loss statistics are available. […]

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Date: September 19th, 2020

A property and casualty insurer’s loss reserve includes estimates for

A property and casualty insurer’s loss reserve includes estimates for all of the following EXCEPT A) claims anticipated but not yet incurred. B) claims reported and adjusted but not yet paid. C) claims reported and filed but not yet adjusted. D) claims incurred but not yet reported to the company.     ANSWER Answer: A

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Date: September 19th, 2020