This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements about the regulation of life insurance companies is (are) true? ... (Read 11 times)

futuristic

  • Hero Member
  • *****
  • Posts: 638
Which of the following statements about the regulation of life insurance companies is (are) true?
 
  I. The percentage of assets a life insurance company may invest in a specific type of asset (e.g., stocks or bonds) is generally limited by law.
  II. The purpose of limiting the accumulation of surplus is to prevent an insurer from increasing its surplus at the expense of policyowner dividends.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Which of the following statements about the regulation of insurance company investments is (are) true?
 
  I. The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.
  II. Life insurers can invest an unlimited amount of their assets in common stocks.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

anyusername12131

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

Answer: C

Answer to Question 2

Answer: A





 

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

For a complete list of videos, visit our video library