Author Question: The major argument in favor of an optional federal charter for insurers is that A) small insurers ... (Read 97 times)

asan beg · **on:** Jul 11, 2018

The major argument in favor of an optional federal charter for insurers is that

A) small insurers need a national charter to be competitive with large insurers.
B) a federal charter will prevent insurer insolvencies.
C) a federal charter will provide greater oversight of insurer market practices.
D) national insurers are at a competitive disadvantage under the present system.

Question 2

The risk-based capital requirements for life insurers are based on a formula that considers four types of risk.

One risk reflects a range of uncertainties that life insurers face including such things as bad management decisions and guaranty fund assessments. This risk is called
A) asset risk.
B) insurance risk.
C) interest rate risk.
D) business risk.