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True or False : Insurance companies are regulated by the federal government, which helps maintain uniform coverage and premiums
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- What are two areas of public spending which directly impact an insurance company? What impact do they actually have on the company?How does the Insurance Commission assure the investing public on the safety of the Insurance products offered in the market?Each state has an insurance commissioner whose job it is to ensure insurance agents and companies are playing within the rules. Why is insurance a highly regulated field?
- The Director of Insurance has the power to. make reasonable insurance rules and regulations determine standard insurance rales Veto insurance laws issue insurance policies3.Define the meaning of underwriting. Briefly explain the basic principles of underwriting. 4.Explain the reasons why the insurance industry is regulated. 5.Why is an insurable interest required in every insurance contractInsurance companies perform functions that are similar to those of investment companies. *True or False
- The Merritt Committee Investigation looked into solutions for dealing with: unethical and undesirable behavior by insurance companies effectiveness of state taxation as opposed to insurance regulation states that do not have a state insurance commissioner system in place insurers that violate risk-based capital requirementsWhich of the following types of insurance does NOT involve a contract with an external party? a. self insurance b. directors and officers insurance c. property insurance d. life insurancewhat is the role of the Insurance Core Principles as it relates to underwriting risks, in the effective management of insurance companies?
- Which of the following is not a regulatory responsibility of the Pension Benefit Guaranty Corporation? Select one: a. They oversee the termination of covered plans. b. They administer an insurance program for defined-benefit plans. c. They interpret legislation. d. They administer an insurance program for defined-contribution plans.What are the main parts of an insurance contract and what are they designed to accomplish? How are insurance contracts interpreted by the courts and regulatory bodies? In a dispute over coverage who has the burden of proof? What is subrogation as it relates to insurance? Consider a situation where a professional misrepresents information when acquiring an insurance policy and a third party is injured. What might happen if a claim is made against the insurance company that issued the policy based on fraudulent information? Will the insurance company be liable? Support your position with a specific case.Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?A. using the modified version of the general model applicable for onerous insurance contractsB. using the general modelC. using a modified version of (a) or (b) applicable to reinsurance contracts heldD. using the premium allocation approach