100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
CBC1501 (WRITTEN) SEMESTER 2 2024 (681974) - DUE 6 SEPTEMBER 2024 STUDY GUIDE AND PRACTICE EXAM 2024/2025 | ACCURATE REAL EXAM QUESTIONS WITH VERIFIED ANSWERS | EXPERT VERIFIED FOR A GUARANTEED PASS | LATEST UPDATE$15.99
Add to cart
CBC1501 (WRITTEN) SEMESTER 2 2024 (681974) - DUE 6 SEPTEMBER 2024 STUDY GUIDE AND PRACTICE EXAM 2024/2025 | ACCURATE REAL EXAM QUESTIONS WITH VERIFIED ANSWERS | EXPERT VERIFIED FOR A GUARANTEED PASS | LATEST UPDATE
8 views 0 purchase
Course
CBC1501
Institution
CBC1501
CBC1501 (WRITTEN) SEMESTER 2 2024 (681974) - DUE 6
SEPTEMBER 2024 STUDY GUIDE AND PRACTICE EXAM
2024/2025 | ACCURATE REAL EXAM QUESTIONS WITH
VERIFIED ANSWERS | EXPERT VERIFIED FOR A
GUARANTEED PASS | LATEST UPDATE
CBC1501 (WRITTEN) SEMESTER 2 2024 (681974) - DUE 6
SEPTEMBER 2024 STUDY GUIDE AND PRACTICE EXAM
2024/2025 | ACCURATE REAL EXAM QUESTIONS WITH
VERIFIED ANSWERS | EXPERT VERIFIED FOR A
GUARANTEED PASS | LATEST UPDATE
,Primary reasons for insurance regulation - ✔✔ANSW✔✔..1. Protect consumers
2. Maintain Insurer Solvency
3. Prevent destructive competition
Protect Consumers-Primary Goal - ✔✔ANSW✔✔..Regulators review insurance policy
forms to ensure they benefit consumers and comply with state consumer protection
laws
State Legislatures can set coverage standards and specify policy language
State regulators can disapprove policy forms and endorsements that are not consistent
with state laws
Regulators provide info about insurance to consumers to help them make informed
decisions
Common complaints received by Insurance Depts. - ✔✔ANSW✔✔..Producers have
sold unecessary insurance
Producers have misrepresented the nature of coverage to make a sale
Producers have stolen or misused insured or insurer funds
Claims reps have refused to pay legitimate claims or unfairly reduced claims payments
Insurance managers have contributed to insurer insolvency through mismanagement
Maintain Insurer Solvency-Primary Goal - ✔✔ANSW✔✔..Solvency protections protects
insureds against the risk that the insurance company will be unable to meet their
financial obligations.
Solvency is important because:
Insurance provides future protections-insolvency causes future protection already
purchased to become worthless
Insolvency adversely affects large numbers of the public
Regulation is necessary to guard against the misuse of large amounts of insureds funds
held by insurers
The goal is not to eliminate all insolvencies but rather to minimize the number of
insolvencies
, Prevent Destructive Competition-Primary Goal - ✔✔ANSW✔✔..Regulators are
responsible for determining if rates are high enough to prevent destructive competition
Some insurers underprice their products to gain market share from higher priced
competitors.
This drives down prices in the whole market.
If the prices become too low some insurers will become insolvent and others may
withdraw from the market or stop writing new business.
An insurance shortage can develop, caused in individuals and firms to be unable to
obtain the coverage they need. Some insurance may also be unavailable at any price.
State Insurance Departments - ✔✔ANSW✔✔..Insurance is primarily regulated by state
insurance depts. and state regulators are members of NAIC.
State insurance depts. fall within the executive branch of state government (implement
laws).
They enforce insurance laws enacted by the legislature.
Each dept. is headed by a state insurance commissioner, superintendent or director.
Either appointed by the governor or elected by the general public. There is
disagreement over whether election or appointment is better
State depts. are mostly funded by premium taxes, also by audit fees, filing fees and
licensing fees
State Insurance Dept. Activities - ✔✔ANSW✔✔..-Licensing insurers
-Licensing producers, claims reps and other insurance workers
-Approving policy forms
-Holding rate hearings and reviewing rate filings
-Evaluating solvency info
-Performing market conduct examinations
-Investigating policy holder complaints
-Rehabbing or liquidating insolvent insurers
-Issuing cease and desist orders
-Fining insurers for violations fo state law
-Publishing shoppers guides and other consumer info (some states)
Preventing fraud
State insurance commissioner activities - ✔✔ANSW✔✔..Typically delegated:
Overseeing the state insurance depts. operations
Promote and enact orders, rules and regulations necessary to administer insurance
laws
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bestnursesteve. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
