Attempts Keep the Highest / 0.2 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 obtain reinsurance on most of their risks The ability of the insurer to withstand unexpected or excessive claims The ability of the insurer to maintain customer profiles Which of the following is true regarding insurance regulation? Check all that apply. If an insurance company becomes insolvent, a federal emergency fund is used to pay outstanding claims. The risk-based capital ratio is used to identify insurance companies with high risk exposure and force them to hold a high level of capital. O Insurance agents must be licensed in order to sell insurance products. United States-based insurance companies that expand their business internationally are subject to foreign insurance regulations. Which of the following created the Federal Insurance Office? O The Sarbanes-Oxley Act O The Glass-Steagall Act O The Financial Reform Act of 2010 O The Financial Services Modernization Act Attempts Keep the Highest / 0.2 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 obtain reinsurance on most of their risks The ability of the insurer to withstand unexpected or excessive claims The ability of the insurer to maintain customer profiles Which of the following is true regarding insurance regulation? Check all that apply. If an insurance company becomes insolvent, a federal emergency fund is used to pay outstanding claims. The risk-based capital ratio is used to identify insurance companies with high risk exposure and force them to hold a high level of capital. O Insurance agents must be licensed in order to sell insurance products. United States-based insurance companies that expand their business internationally are subject to foreign insurance regulations. Which of the following created the Federal Insurance Office? O The Sarbanes-Oxley Act O The Glass-Steagall Act O The Financial Reform Act of 2010 O The Financial Services Modernization Act
