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RMI 3011 Exam 2 Quiz RMI 3011 Florida State University -Questions and answers already passed
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RMI 3011 Exam 2 Quiz RMI 3011 Florida State University -Questions and answers already passed The most heavily regulated lines of insurance (types of policies) include: auto liability life insurance large commercial lines property all of the above none of the above - correct answer auto liab...

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  • November 30, 2024
  • 26
  • 2024/2025
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  • Questions & answers

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  • rmi 3011 exam 2 quiz
  • rmi 3011 exam 2 quiz questions and answers already
  • rmi 3011 exam 2 quiz rmi 3011 florida state univer

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RMI 3011 Exam 2 Quiz Questions and
answers already passed
The most heavily regulated lines of insurance (types of policies) include:
auto liability
life insurance
large commercial lines property
all of the above
none of the above - correct answer ✔auto liability


One argument in favor of state regulation is:
state regulation is not uniform, it can be challenging and inefficient
state regulation is more flexible
state regulation is ineffective for large insurers who operate in many states
federal regulation would be less costly - correct answer ✔state regulation is
more flexible


To help regulate solvency, the NAIC developed:
The Basel Accords
Royal Bank of Canada
Risk Based Capital
All of the above
None of the above - correct answer ✔Risk Based Capital


Which of the following is NOT a reason that insurance is regulated?
Premium paid upfront, benefits may come later

,complex legal contracts
some insurance is legally required
All of the above are reasons why insurance is regulated
None of the above are reasons why insurance is regulated - correct answer
✔All of the above are reasons why insurance is regulated


Given that insurance agents (or brokers) are often the only connection
between the consumer and the insurer in a transaction, the agent's activities
are regulated. "Bad acts" committed by agents with respect to their
commission structure include:
I. twisting
II. contract writing
III. rebating - correct answer ✔I and III


Which of the following are aspects of insurance that are regulated:
I. Minimum standards of financial solvency
II. Rates and expenses
III. Policy language - correct answer ✔I, II, & III


When it comes to rate regulation in insurance the general requirement of
regulation is rates should be:
I. adequate
II. not excessive
III. fair (not unfairly discriminatory) - correct answer ✔I, II, & III


Which Congressional Act gives states the right to regulate insurance even
though it is considered interstate commerce?
McCarran-Ferguson Act

, Biggert-Watters Act
Insurance Regulation Act of 1932
Paul v Virginia - correct answer ✔McCarran-Ferguson Act


One possible direction that regulation is going is?
more of a focus on affordability
less of a focus on affordability
more international regulation
less international regulation - correct answer ✔more of a focus on
affordability


Which of the following is true regarding the effect that regulation has on rates?
I. regulation adds to the cost of doing business so it will increase rates
II. regulation can reduce market volatility which may stabilize rates
III. regulation makes rates react more quickly to market (risk) changes -
correct answer ✔I and II


If an insurance company does go bankrupt (insolvent) claims made by
policyholders:
never get paid
are paid by the state guaranty funds (up to certain limits)
are paid by another competing insurance company
All of the above
None of the above - correct answer ✔are paid by the state guaranty funds
(up to certain limits)
are paid by another competing insurance company

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