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.
Answer: C
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Which of the following is not true regarding employer disability insurance?
A) Disability benefits are provided for very long periods, usually up to 30 years. B) About half of all large and medium-sized firms offer an optional disability plan through an insurance company. C) The premiums charged through group plans are normally low. D) A typical disability policy covers about 60% of the employee's salary.
IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction. The disposal group notion of IFRS envisions a larger unit than the component notion of U.S. GAAP. In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a discontinued operation, it aggregates the assets and
liabilities of that unit on the balance sheet into four groups. Which of the following is not one of the groups? a. current assets b. noncurrent assets c. current liabilities d. noncurrent liabilities e. contingent liabilities