The number of title insurance companies operating in State Z is relatively low. Recently, the largest of these companies (50 percent market share) acquired the second largest company (30 percent market share).
Immediately after the acquisition, the insurer raised premiums by 75 percent. This scenario demonstrates which of the following rationales for the regulation of insurance?
A) maintain insurer solvency
B) prohibit unfair sales practices by agents
C) ensure reasonable rates
D) make insurance available
Question 2
Under what type of rate regulation are insurers required to obtain approval of rates before using them if the rate change exceeds a specified predetermined range?
A) flex-rating law
B) prior-approval law
C) file-and-use law
D) use-and-file law
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