Question 1

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

Accepted Answer

A) greater opportunity for innovation 
B) more effective treatment of systemic risk 
C) greater responsiveness to local needs 
D) more competent regulators 
A) greater opportunity for innovation 
B) more effective treatment of systemic risk 
C) greater responsiveness to local needs 
D) more competent regulators

Question 2

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

Accepted Answer

A) the risk-based capital requirements. 
B) an insurance guaranty fund. 
C) the Insurance Regulatory Information System (IRIS). 
D) the assessment method. 
A) the risk-based capital requirements. 
B) an insurance guaranty fund. 
C) the Insurance Regulatory Information System (IRIS). 
D) the assessment method.

Question 3

The right of the states to regulate the business of insurance was first established by

Accepted Answer

A) the South-Eastern Underwriters Association case. 
B) Paul v.Virginia. 
C) the Financial Modernization Act. 
D) the Sherman Act. 
A) the South-Eastern Underwriters Association case. 
B) Paul v.Virginia. 
C) the Financial Modernization Act. 
D) the Sherman Act.

Question 4

All of the following statements about insurance regulation are true EXCEPT

Accepted Answer

A) Insurance commissioners are appointed in some states and elected in some states. 
B) Insurers are subject to regulation by certain federal agencies and laws. 
C) The National Association of Insurance Commissioners (NAI
C) can force states to adopt the model laws that it drafts. 
D) An insurance commissioner can revoke or suspend an insurer's license to do business in his or her state. 
A) Insurance commissioners are appointed in some states and elected in some states. 
B) Insurers are subject to regulation by certain federal agencies and laws. 
C) The National Association of Insurance Commissioners (NAI
C) can force states to adopt the model laws that it drafts. 
D) An insurance commissioner can revoke or suspend an insurer's license to do business in his or her state.

Question 5

Mutual Property Insurance Company has a surplus of $2 million.According to a conservative rule,how much new net premiums can Mutual Property Insurance Company safely write?

Accepted Answer

A) $2 million 
B) $8 million 
C) $10 million 
D) $20 million 
A) $2 million 
B) $8 million 
C) $10 million 
D) $20 million

Question 6

ABC Insurance Company would like to purchase a bank.For many years,ABC was not permitted under federal law to enter into banking operations.Which of the following legislative acts eliminated the prohibition that prevented banks,insurers,and investment firms from entering into one another's markets?

Accepted Answer

A) The McCarran-Ferguson Act 
B) The Tax Reform Act 
C) The Consolidated Omnibus Budget Reconciliation Act 
D) The Financial Modernization Act (Gramm-Leach-Bliley Act) 
A) The McCarran-Ferguson Act 
B) The Tax Reform Act 
C) The Consolidated Omnibus Budget Reconciliation Act 
D) The Financial Modernization Act (Gramm-Leach-Bliley Act)

Question 7

One method of ensuring the solvency of insurers is a periodic review,every three to five years,of insurers that operate on a multistate basis.This review is coordinated by the NAIC.This review is called a(n)

Accepted Answer

A) annual report. 
B) early warning system. 
C) field examination. 
D) inspection report. 
A) annual report. 
B) early warning system. 
C) field examination. 
D) inspection report.

Question 8

Which of the following is considered a nonadmitted asset for an insurer?

Accepted Answer

A) cash 
B) preferred stocks 
C) real estate 
D) office furniture 
A) cash 
B) preferred stocks 
C) real estate 
D) office furniture

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

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

The right of the states to regulate the business of insurance was first established by

All of the following statements about insurance regulation are true EXCEPT

Mutual Property Insurance Company has a surplus of $2 million.According to a conservative rule,how much new net premiums can Mutual Property Insurance Company safely write?

ABC Insurance Company would like to purchase a bank.For many years,ABC was not permitted under federal law to enter into banking operations.Which of the following legislative acts eliminated the prohibition that prevented banks,insurers,and investment firms from entering into one another's markets?

One method of ensuring the solvency of insurers is a periodic review,every three to five years,of insurers that operate on a multistate basis.This review is coordinated by the NAIC.This review is called a(n)

Which of the following is considered a nonadmitted asset for an insurer?

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters

Exam 8: Government Regulation of Insurance

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

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

The right of the states to regulate the business of insurance was first established by

All of the following statements about insurance regulation are true EXCEPT

Mutual Property Insurance Company has a surplus of $2 million.According to a conservative rule,how much new net premiums can Mutual Property Insurance Company safely write?

ABC Insurance Company would like to purchase a bank.For many years,ABC was not permitted under federal law to enter into banking operations.Which of the following legislative acts eliminated the prohibition that prevented banks,insurers,and investment firms from entering into one another's markets?

One method of ensuring the solvency of insurers is a periodic review,every three to five years,of insurers that operate on a multistate basis.This review is coordinated by the NAIC.This review is called a(n)

Which of the following is considered a nonadmitted asset for an insurer?

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Advanced Topics in Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform; Individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Homeowners Insurance,section I

Homeowners Insurance,section II

Auto Insurance

Auto Insurance and Society

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

Filters