瑞达rejda保险教材英文练习题8

1、(Rejda)PrinciplesofRiskManagementandInsurance,11eChapter8GovernmentRegulationofInsurance1)ReasonsforregulationofinsuranceincludewhichofthefollowingI. Maintaininginsurersolvency.II. Ensuringreasonablerates.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:CQuestionStatus:PreviousEdition2) Theright

2、ofthestatestoregulatethebusinessofinsurancewasfirstestablishedbyA) theSouth-EasternUnderwritersAssociationcase.B) Paulv.Virginia.C) theFinancialModernizationAct.D) theShermanAct.Answer:BQuestionStatus:PreviousEdition3) ThebasisforcurrentstateregulationofinsuranceisA) theMcCarran-FergusonAct.B) Paulv

3、.Virginia.C) theSouth-EasternUnderwritersAssociationcase.D) theNationalAssociationofInsuranceCommissioners.Answer:AQuestionStatus:PreviousEdition4) AllofthefollowingstatementsaboutthemethodsofregulatinginsurancearetrueEXCEPTA) Allstateshaveinsurancelawsthatregulatetheoperationsofinsurers.B) Insurers

4、aretotallyexemptfromregulationbyfederalagenciesandlaws.C) Thecourtsregulateinsuranceinmanyways,includingtheinterpretationofpolicyclausesandprovisions.D) Stateinsurancecommissioners,throughadministrativerulings,haveconsiderablepoweroverinsurersdoingbusinessintheirstates.Answer:BQuestionStatus:Previou

5、sEdition5) Whichofthefollowingstatementsaboutthelicensingofinsurancecompaniesis(are)trueI) Anewcapitalstockinsurermustmeetminimumcapitalandsurplusrequirements,whichvarybystateandlineofinsurance.J) .Thelicensingrequirementsforinsurancecompaniesarelessstringentthanthoseimposedonmostothertypesoffirms.K

6、) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:AQuestionStatus:PreviousEdition6) Aninsurancecompanyincorporatedinanotherstatehasbeenlicensedtooperateinyourstate.Inyourstate,theinsurerwouldbeconsidereda(n)A) nonadmittedinsurer.B) foreigninsurer.C) alieninsurer.D) reciprocalinsurer.Answer:BQuesti

7、onStatus:PreviousEdition7) Aninsurancecompanycharteredinanothercountryhasbeenlicensedtooperateinyourstate.Inyourstate,theinsurerwouldbeconsidereda(n)A) nonadmittedinsurer.B) foreigninsurer.C) alieninsurer.D) reciprocalinsurer.Answer:CQuestionStatus:PreviousEdition8) Whichofthefollowingisconsideredan

8、onadmittedassetforaninsurerA) cashB) preferredstocksC) realestateD) officefurnitureAnswer:DQuestionStatus:PreviousEdition9) Thepolicyholders'surplusofaninsurerisdefinedasthedifferencebetweenitsA) assetsanditsliabilities.B) premiumincomeanditsexpenses.C) reservesanditsliabilities.D) assetsanditsn

9、onadmittedassets.Answer:AQuestionStatus:PreviousEdition10) Whichofthefollowingstatementsabouttheuseofrisk-basedcapitalrequirementsis(are)trueI) Insurersmusthaveacertainamountofcapitaldependingontheriskinessoftheirinvestmentsandinsuranceoperations.J) .Insurersmayberequiredtotakecertainactionsdependin

10、gonhowmuchcapitaltheyhaverelativetotheirrisk-basedcapitalrequirements.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition11) Whichofthefollowingstatementsabouttheregulationofinsurancecompanyinvestmentsis(are)trueI) Thepurposeofregulatinginsurancecompanyinvestmentsist

11、opreventinsurersfrommakingunsoundinvestmentswhichcouldthreatentheirsolvency.J) .Lifeinsurerscaninvestanunlimitedamountoftheirassetsincommonstocks.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:AQuestionStatus:PreviousEdition12) Whichofthefollowingstatementsabouttheregulationoflifeinsurancecomp

12、aniesis(are)trueI. Thepercentageofassetsalifeinsurancecompanymayinvestinaspecifictypeofasset.,stocksorbonds)isgenerallylimitedbylaw.II. Thepurposeoflimitingtheaccumulationofsurplusistopreventaninsurerfromincreasingitssurplusattheexpenseofpolicyownerdividends.A) IonlyB) IIonlyC) bothIandIID) neitherI

13、norIIAnswer:CQuestionStatus:PreviousEdition13)Whichofthefollowingstatementsaboutstateinsuranceguarantyfundsis(are)trueI. Theylimittheamountthatpolicyownerscancollectifaninsurerbecomesinsolvent.II. Theyareusuallyfundedbygeneralrevenuesofthestates.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:A

14、QuestionStatus:PreviousEdition14) Underonetypeofrateregulation,insurersarenotrequiredtofiletheirrateswiththestateinsurancedepartment.However,insurersmayberequiredtofurnishrateschedulesandsupportingdatatostateofficials.Afundamentalassumptionunderlyingthistypeofratinglawisthatmarketforceswilldetermine

15、thepriceandavailabilityofinsurance,ratherthandiscretionaryactsofregulators.ThistypeofrateregulationiscalledA) aflex-ratinglaw.B) aprior-approvallaw.C) afile-and-uselaw.D) nofilingrequired.Answer:DQuestionStatus:Revised15) Underwhattypeofrateregulationareinsurersrequiredtoobtainapprovalofratesbeforeu

16、singthemiftheratechangeexceedsaspecifiedpredeterminedrangeA) flex-ratinglawB) prior-approvallawC) file-and-uselawD) use-and-filelawAnswer:AQuestionStatus:Revised16) Bymisrepresentingthetruefacts,Gretchenwasabletoconvinceaclienttodropalifeinsurancepolicywithanothercompanyandtopurchaseapolicyfromtheco

17、mpanythatGretchenrepresents.GretchenhasengagedinanillegalsalespracticecalledA) baitandswitch.B) rebating.C)retaliating.D)twisting.Answer:DQuestionStatus:PreviousEdition17) Whichofthefollowingstatementsaboutpremiumtaxesis(are)trueI) TheyareleviedbythefederalgovernmentasaresultoftheMcCarran-FergusonAc

18、t.J) .Theirprimarypurposeistoprovidefundsforinsuranceregulation.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:DQuestionStatus:PreviousEditioninclude allcommittees18) AdvantagescitedbyproponentsoffederalregulationofinsuranceofthefollowingEXCEPTA) greaterefficiency.B) greateropportunityforinnov

19、ation.C) uniformityoflaws.D) morecompetentregulators.Answer:BQuestionStatus:PreviousEdition19) AdvantagescitedbyproponentsofstateregulationofinsuranceincludeallofthefollowingEXCEPTA) uniformityoflawsbytheNAIC.B) greateropportunityforinnovation.C) greaterresponsivenesstolocalneeds.D) centralizationof

20、politicalpower.Answer:DQuestionStatus:PreviousEdition20) ShortcomingsofstateregulationofinsurancefoundbyCongressionalandtheGeneralAccountingOfficeincludeallofthefollowingEXCEPTA) inadequateprotectionofconsumers.B) inadequatemarketconductexaminations.C) inabilitytorespondtouniquelocalneeds.D) regulat

21、or'sover-responsivenesstotheinsuranceindustry.Answer:CQuestionStatus:PreviousEdition21) ThemajorreasonsforinsurerinsolvencyincludewhichofthefollowingI. Inadequatepricingandlossreserves.II. Rapidgrowthandinadequatesurplus.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:CQuestionStatus:Previo

22、usEdition22) TheprincipalmethodsofensuringinsurersolvencyincludeallofthefollowingEXCEPTA) SecurityandExchangeCommissionoversightofinvestments.B) risk-basedcapitalstandards.C) fieldexaminations.D) reviewofrequiredannualfinancialstatements.Answer:AQuestionStatus:PreviousEdition23) Whichofthefollowingi

23、sanargumentforrepealingtheMcCarran-FergusonActA)Itwouldmakeiteasierforsmallinsurerstocompete.B) Itwouldencouragesharingofinformation.C) Itwouldmakeiteasiertodevelopcommoncoverageforms.D) Itwouldcorrectfordefectsinstateregulation.Answer:DQuestionStatus:PreviousEdition24) Thenumberoftitleinsurancecomp

24、aniesoperatinginStateZisrelativelylow.Recently,thelargestofthesecompanies(50percentmarketshare)acquiredthesecondlargestcompany(30percentmarketshare).Immediatelyaftertheacquisition,theinsurerraisedpremiumsby75percent.ThisscenariodemonstrateswhichofthefollowingrationalesfortheregulationofinsuranceA) m

25、aintaininsurersolvencyB) compensateforinadequateconsumerknowledgeC) ensurereasonableratesD) makeinsuranceavailableAnswer:CQuestionStatus:PreviousEdition25) InwhichofthefollowingdidtheCourtdecidethatinsurancewasinterstatecommercewhenconductedacrossstatelines,andthereforewassubjecttofederalregulationA

26、) Paulv.VirginiaB) South-EasternUnderwritersAssociationcaseC) McCarran-FergusonActD) FinancialModernizationActAnswer:BQuestionStatus:PreviousEdition26) AlifeinsurancecompanybasedinCanadawaslicensedtooperateinMassachusetts.WhenoperatinginMassachusetts,theCanadianinsurerwouldbeconsidereda(n)A) domesti

27、cinsurer.B) captiveinsurer.C) foreigninsurer.D) alieninsurer.Answer:DQuestionStatus:PreviousEdition27) XYZMutualInsuranceCompanyhastotalassetsof$10million.Thepolicyholderssurplusis$2million.WhatareXYZMutual'stotalliabilitiesA) $millionB) $millionC) $millionD) $millionAnswer:BQuestionStatus:Previ

28、ousEdition28) MutualPropertyInsuranceCompanyhasasurplusof$2million.Accordingtoaconservativeruleofthumb,howmuchnewnetpremiumscanMutualPropertyInsuranceCompanysafelywriteA) $2millionB) $8millionC) $10millionD) $20millionAnswer:AQuestionStatus:PreviousEdition29) Fly-By-NightInsuranceCompanyhadmuchlarge

29、rlossesthanforecast.Thecompanydidnotchargeadequatepremiumsnordidthecompanypurchasereinsurance.IfFly-By-Nightbecomesinsolvent,whichofthefollowingwillhelppaytheunpaidclaimsoftheinsurerA) guarantyfundB) premiumrebatesC) risk-basedcapitalD) admittedassetsAnswer:AQuestionStatus:PreviousEdition30) Graceis

30、alifeinsuranceagent.Sheisattemptingtosellalargelifeinsurancepolicy,buttheprospectivepurchaserishavingsecondthoughts.Topersuadetheprospectivepurchaser,Gracesaid,"Iwillearna$1,000commissionifyoubuythispolicy.I'llgiveyou$500ofmycommissionifyoubuythepolicy."Inmoststates,whatillegalsalespra

31、cticewillGracebeguiltyofifshesplitshercommissionwiththepurchaserA) rebatingB) churningC) twistingD) backdatingAnswer:AQuestionStatus:PreviousEdition31) StateX'spremiumtaxrateis2percent.StateY'spremiumtaxrateis3percent.StateXinsurersarerequiredtopaythe3percentrateonbusinesswritteninStateY.Sta

32、teXrequiresinsurersfromStateYtopaya3percentpremiumtaxonbusinesswritteninStateX,eventhoughthepremiumtaxrateisonly2percentinStateX.ThispracticeisknownasaA) taxtariff.B) guarantyfundassessment.C) risk-basedcapitalrequirement.D) retaliatorytaxlaw.Answer:DQuestionStatus:PreviousEdition32) ABCInsuranceCom

33、panywouldliketopurchaseabank.Formanyyears,ABCwasnotpermittedunderfederallawtoenterintobankingoperations.Whichofthefollowinglegislativeactseliminatedtheprohibitionthatpreventedbanks,insurers,andinvestmentfirmsfromenteringintooneanother'smarketsA) TheMcCarran-FergusonActB) TheTaxReformActC) TheCon

34、solidatedOmnibusBudgetReconciliationActD) TheFinancialModernizationAct(Gramm-Leach-BlileyAct)Answer:DQuestionStatus:PreviousEdition33) Underonetypeofratinglaw,insurersarefreetochangeratesandtousemodifiedratesimmediately.However,thenewratemustbefiledwithregulatorswithinaspecifiedperiod,suchas60daysaf

35、terthemodifiedrateisemployed.ThistypeofratinglawiscalledA) priorapproval.B) file-and-use.C) use-and-file.D) flexrating.Answer:CQuestionStatus:PreviousEdition34) Theregulationofinsurersinareasthataffectconsumers,whichincludeclaimshandling,underwriting,complaints,advertising,salespractices,andothertra

36、depracticesiscalledA) solvencysurveillance.B) marketconductregulation.C) combinedratioanalysis.D) marketshareregulation.Answer:BQuestionStatus:PreviousEdition35) TheNationalAssociationofInsuranceCommissioners(NAIC)administersan"earlywarningsystem"tohelpensureinsurancecompanysolvency.Thissy

37、stemusesdataprovidedintheannualstatementtoidentifycompaniesthatmayposeasolvencyrisk.ThisearlywarningsystemiscalledA) therisk-basedcapitalrequirements.B) aninsuranceguarantyfund.C) theInsuranceRegulatoryInformationSystem(IRIS)D) theassessmentmethod.Answer:CQuestionStatus:PreviousEdition36) Whichofthe

38、followingstatementsis(are)trueregardingthequalityofinsuranceregulationI) Thequalityofinsuranceregulationisuniformfromstatetostate.J) .Allevidencesuggestsfederalregulationofinsurancewouldimprovethequalityofregulation.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:DQuestionStatus:PreviousEdition

39、37) Whichofthefollowingstatementsconcerningtheproposedoptionalfederalcharterforlifeinsurersis(are)trueI) Largeinsurersoperatinginmanystateswouldmorelikelypreferastatecharterwhilesmaller,regional,insurerswouldmorelikelychooseafederalcharter.J) .Proponentsofthefederalcharterarguethatitwouldspeedthedev

40、elopmentandapprovalofnewproducts.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition38) AllofthefollowingaremethodshelpingtoinsurethesolvencyofinsurersEXCEPTA) commerciallinesderegulationB) risk-basedcapitalstandards.C) theNAIC'searlywarningsystem.D) theNAIC'

41、sFASTscreeningsystem.Answer:AQuestionStatus:PreviousEdition39) Ascorederivedfromanindividual'scredithistoryandotherfactorsthatisusedbymanyautoandhomeownersinsurersforunderwritingandratingpurposesiscalleda(n)A) CLUEscore.B) insurancescore.C) expenseratioscore.D) combinedratioscore.Answer:BQuestio

42、nStatus:PreviousEdition40) Allofthefollowingareargumentsinfavorofusinganapplicant'screditrecordinpersonallinesunderwritingEXCEPTA) Mostconsumershavegoodcreditrecordsandbenefitwhencredithistoryisusedasaratingfactor.B) Useofcreditdatainunderwritingorratingdiscriminatesagainstcertaingroups.C) Under

43、writingandratingmaybemoreconsistentifapplicants'credithistoriesareconsidered.D) Thereishighcorrelationbetweenanapplicant'screditrecordandfutureclaimsexperience.Answer:BQuestionStatus:PreviousEdition41) AllofthefollowingstatementsaboutinsuranceregulationaretrueEXCEPTA) Insurancecommissionersareappointedinso