Monopoly Insurance is the only company marketing a certain line of insurance in a state.After complaints from several consumers,the State Insurance Department investigated Monopoly's rates.The regulators determined that Monopoly was taking advantage of being the only insurer offering the line by charging more than double the actuarial cost of the coverage.Which regulatory rating objective was Monopoly violating?

Question

Quizplus · Accepted Answer

Monopoly Insurance was violating the regulatory objective that rates must not be excessive. It was charging more than double the actuarial cost of the coverage, which is an excessive rate.

Monopoly Insurance Is the Only Company Marketing a Certain Line