Author Question: Which of the following is an expense for a life insurance company? A) loss reserves B) death ... (Read 97 times)

azncindy619 · **on:** Jul 11, 2018

Which of the following is an expense for a life insurance company?

A) loss reserves
B) death benefits paid to a beneficiary
C) unrealized capital gains
D) realized capital gains

Question 2

All of the following statements about regulatory objectives of insurance rate making are true EXCEPT

A) One purpose of rate adequacy is to maintain the solvency of insurers.
B) Rates unfairly discriminate if loss exposures that are similar with respect to losses and expenses are charged substantially different rates.
C) Insurers know in advance if the coverages marketed will be profitable, so rate regulation is not needed.
D) Rates are excessive if policyholders are paying substantially more than the actual value of their protection.