Exam 7: Insurance Regulation

The NAIC requires life insurers to keep two different types of reserve accounts. These reserve accounts are designed to protect insureds from poor investment results the insurer may suffer. What are these two reserves called?

Unrestrained price competition does not work in the insurance market because prices have to be determined long before final costs are known.

Which of the following is not directly a subject of state insurance regulation?

What is the difference between prior approval and open rating laws?

The Appleton Rule applies to all insurance companies doing business in Wisconsin.

Which of the following is not a reason for the comprehensive regulation of insurance?

Under the Optional Federal Charter,and insurer that becomes federally-regulated will then be subject to:

Currently,the extent of the federal government's right to exercise regulatory authority over insurance companies is dictated by:

McCarran-Ferguson Act expressed the intent of the federal government to forever abandon to the states the right to regulate insurance.

The South-Eastern Underwriters Association Case:

Explain briefly the purpose of the McCarran Act.

Congress passed McCarran-Ferguson Act as a response to the SEUA decision.

The arguments for federal regulation of insurance all of the following except:

What is the purpose of the asset valuation reserve?

Which one of the following is not a reason for the regulation of insurance?

IBNR reserves are an estimate of:

A loss reserve is more likely to be maintained in relatively large amounts by a property than a life insurance company.

The NAIC requires life insurers to have reserve accounts that protect insureds from the:

The Southeastern Underwriters Association (SEUA)case reversed the Paul v.Virginia decision.

The NAIC is a federal regulatory agency for administering federal insurance programs for armed service personnel.