State laws generally require insurance companies to maintain certain debt and solvency ratios. Those companies who fail to maintain minimum levels, are subject to severe penalties, most often affecting the insurance company's continuation as a going concern. How may regulatory requirements such as these impact management decisions?

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The Answer of State laws generally require insurance companies to maintain certain debt and solvency ratios. Those companies who fail to maintain minimum levels, are subject to severe penalties, most often affecting the insurance company's continuation as a going concern. How may regulatory requirements such as these impact management decisions?

State Laws Generally Require Insurance Companies to Maintain Certain Debt