Question
1. What was the primary effect of The McCarran-Ferguson Act? Created the insurance rating companies Outlawed regulation of insurance Legalized regulation of insurance Federal insurance
1. What was the primary effect of The McCarran-Ferguson Act?
| Created the insurance rating companies |
| Outlawed regulation of insurance |
| Legalized regulation of insurance |
| Federal insurance regulation can never overrule state regulation |
None
2.
The underwriting process is designed to:
| Collect relevant applicant information |
| Protect company profits |
| Adhere to legal requirements |
| Determine policy form and riders for individual applicants |
All of the above
3.
EZ Insurance has a loss ratio of 60% and an expense ratio of 35% in automobile insurance. This means:
| EZ is unprofitable |
| EZ is showing an underwriting loss on automobile insurance |
| EZ is making 3.2% profit on automobile insurance |
| EZ is showing an underwriting profit on automobile insurance |
None
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
