Insurance regulations require legal reserves and surplus because:
A) assets have to equal liabilities plus owners' equity
B) reserves are long-term obligations and must be met with long-term assets
C) they provide a cushion against bad underwriting and investment results
D) insurers must pre-fund all agent's commissions and underwriting expenses
Correct Answer:
Verified
Q1: Which of the following is not an
Q2: The right of the states to regulate
Q3: Which of the following best describes the
Q4: The South-Eastern Underwriters Association Case:
A) preceded the
Q6: Which of the following is not a
Q7: Which of the following is not directly
Q8: What was the major result of the
Q9: Currently, the extent of the federal government's
Q10: Insurer reserve requirements exist to:
A) force the
Q11: Which of the following is the most
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents