1.Insurance rates are considered dynamic because of the actuarial cycle: True False

2. Stock insurers do not show capital on their balance sheets. True False

3.Combined ratio does not include income from investments. True False

4 . Insurance companies are required to submit uniform financial statements to the regulators. These statements are based on statutory accounting (SAP) as opposed to the generally accepted accounting (GAP) system. True False

5 Each line of business has its own break-even point. True False

6. Depending on the investment income contribution of each line of insurance, the longer tail lines have a smaller break-even combined ratio level. True False

7 In a soft market, when insurance capacity is low.True False

8 . National Association of Insurance Commissioners (NAIC) model laws cannot be modified by the state; this is to ensure uniformity in insurance regulations.True False

9 An insurer must have a license from each state in which it conducts business.True False

10. The commissioner of insurance generally has more control over insurers not licensed in the state.True False