The U.S. National Association of Insurance Commissioners (NAIC) in attempting to estimate the capital needed by a firm to safely absorb the losses to which it is subject for property/casualty companies includes which of the following risk categories:

Question

Quizplus · Accepted Answer

The NAIC includes all of the risk categories listed in their estimation of necessary capital for property/casualty insurance companies. Investment or asset risk, credit risk such as reinsurance, off-balance sheet risk such as separate accounts, and underwriting risk such as loss ratio and reserve adequacy are all important factors to consider when determining the capital needed for a firm to safely absorb losses.

The US National Association of Insurance Commissioners (NAIC) in Attempting to to Estimate