1. Due to the collapse of the 2007-2009 economy, critics argue that federal regulation of insurance would be superior to the current system of state-by-state regulation. All of the following are reasons critics argue for more federal regulation of insurance except a. Federal law would make state laws and regulations more uniform across the country. b. More effective negotiation of international insurance agreements c. Greater efficiency of insurers in licensing, etc. d. Federal law would make systemic risk, the collapse of an entire system or entire market due to the failure of a single entity or entities, more probable.
2. All are reasons for insurer insolvency except a. Inadequate claim reserves b. Rates that are artificially high c. Rapid growth of an insurer d. Bad investment policies
3. The insurance industry is regulated in part to protect consumers consumers need protection from all of the following except:

a. Unfair trade practices

b. Twisting

c. Regeneration

d. Complaint divisions

Bonus +2: Define market conduct and describe why market conduct examinations are important:

4. There are four legal principles we discussed in class; these include all except:

a. Principle of indemnity

b. principle of insurable interest

c. principle of subrogation

d. principle of utmost bad faith

5. Why does an insured need insurable interest in property?

a. To receive a windfall

b. To prevent gambling

c. To reduce moral hazard

d. To measure the amount of the insureds loss in property insurance