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2. Regulation of insurance companies The insurance regulatory system is designed to identify financial issues of an insurance company and propose solutions for recovery. Which

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2. Regulation of insurance companies The insurance regulatory system is designed to identify financial issues of an insurance company and propose solutions for recovery. Which of the following characteristics are assessed to detect such issues? Check all that apply. The liquidity of the insurer's current assets The ability of the insurer to withstand a market decline that negatively impacts their investments The ability of the insurer to withstand unexpected or excessive claims The operational efficiency of the insurer The ability of the insurer to maintain customer profiles Which of the following is true regarding insurance regulation? Check all that apply. The risk-based capital ratio is used to identify insurance companies with high risk exposure and force them to maintain a high level of capital. Insurance agents must be licensed in order to sell insurance products. United States-based insurance companies that expand their business internationally are not subject to foreign insurance regulations. If an insurance company becomes insolvent, state guaranty funds are used to pay outstanding claims. Which of the following created the Federal Insurance Office? The Glass-Steagall Act The Financial Reform Act of 2010 The Sarbanes-Oxley Act The Financial Services Modernization Act 2. Regulation of insurance companies The insurance regulatory system is designed to identify financial issues of an insurance company and propose solutions for recovery. Which of the following characteristics are assessed to detect such issues? Check all that apply. The liquidity of the insurer's current assets The ability of the insurer to withstand a market decline that negatively impacts their investments The ability of the insurer to withstand unexpected or excessive claims The operational efficiency of the insurer The ability of the insurer to maintain customer profiles Which of the following is true regarding insurance regulation? Check all that apply. The risk-based capital ratio is used to identify insurance companies with high risk exposure and force them to maintain a high level of capital. Insurance agents must be licensed in order to sell insurance products. United States-based insurance companies that expand their business internationally are not subject to foreign insurance regulations. If an insurance company becomes insolvent, state guaranty funds are used to pay outstanding claims. Which of the following created the Federal Insurance Office? The Glass-Steagall Act The Financial Reform Act of 2010 The Sarbanes-Oxley Act The Financial Services Modernization Act

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