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 45 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?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

For a complete list of videos, visit our video library