Monopoly Insurance is the only company marketing a certain line of insurance in a state
After complaints from several consumers, the State Insurance Department investigated Monopoly's rates. The regulators determined that Monopoly was taking advantage of being the only insurer offering the line by charging more than double the actuarial cost of the coverage. Which regulatory rating objective was Monopoly violating?
A) Rates must be adequate.
B) Rates should encourage loss control.
C) Rates must not be excessive.
D) Rates must not unfairly discriminate.
Answer: C
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According to the _____________ motivational theory, a person's needs can be ranked in order of priority, and people will only be motivated to achieve higher-level needs after their lower-level needs are met.
Fill in the blank(s) with the appropriate word(s).
During 2017, Grambling Company purchased 10,000 shares of Southern Corp. common stock for $215,000 as an investment (no significant influence). The fair value of these securities was $289,000 at December 31, 2017. During 2018, Grambling sold all of the Southern stock for $226,000. Grambling Company should report a realized gain on the sale of stock in 2018 of:
(a) $11,000 (b) $25,000 (c) $26,000 (d) $37,000