Which of the following is the most important goal of insurance regulation?

Question

Quizplus · Accepted Answer

The most important goal of insurance regulation is to promote the solvency of insurance companies. This ensures that they have the financial ability to pay claims to policyholders. Other goals, such as limiting the number of insurance companies or mandating insurance purchases, are secondary to the primary goal of ensuring the financial stability of insurance companies. Approving contractual language is also important, but without promoting solvency, insurance companies may not be able to meet their contractual obligations.

Which of the Following Is the Most Important Goal of Insurance