Which of the following statements about the use of risk-based capital requirements is (are) true?
I. Insurers must have a certain amount of capital depending on the riskiness of their investments and insurance operations.
II. Insurers may be required to take certain actions depending on how much capital they have relative to their risk-based capital requirements.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: C
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Under a "cafeteria plan" maintained by an employer,
a) Provision may be made for deferred compensation other than 401(k) plans. b) Participants may select their own menu of benefits. c) At least 3 years of service are required before an employee can participate in the plan. d) Participation must be restricted to employees and their spouses and minor children.
Daniel is due to receive the balance of his trust fund in 5 years; as a result he has taken out a(n) ________ mortgage where he has made small payments for several years and will pay off the balance in one large payment with his trust funds
A) ARM B) graduated payment C) shared appreciation D) fixed rate E) balloon payment