1. All are methods for regulating insurers except a. Legislation b. Personal injury attorneys c. Courts d. State departments of insurance

Bonus +2: What does the McCarran-Ferguson Act provide for?

2. Insurers, by law, must file certain financial statements in an annual report to regulators. The Annual Statement is based on which accounting principle? a. Generally accepted accounting principles (GAAP) b. Statutory accounting principles (SAP) c. General ledger system of accounting d. Accrual accounting
3. Non-admitted assets include all of the following except a. Premiums overdue by 90 days or more b. Office furniture and equipment c. Certain investments or amounts that exceed statutory limits for certain types of securities d. Cash
4. All are types of rating laws except a. File-and-report law b. File-and-use law c. Prior-approval laws d. Use-and-file laws
5. Most states forbid rebating of premiums, which is providing an individual a premium reduction or some other financial advantage not stated in the policy as an inducement to purchase the policy. Consumer groups, however, believe that anti-rebating laws are harmful to consumers. Critics argue that prohibiting rebating does all of the following except: a. Decreases pricing competition b. Increases price competition, providing lower rates c. Protects agents rather than consumers d. Prohibits insurance purchasers from negotiating prices with insurance/agents