Which of the following statements about the regulation of insurance company investments is (are) true?
I. The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.
II. Life insurers can invest an unlimited amount of their assets in common stocks.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: A
You might also like to view...
Which uses a computer joystick to test emotional reactions to an ad?
A) a warmth monitor B) cognitive neuroscience C) copytesting D) ad tracking research
State X's premium tax rate is 2 percent. State Y's premium tax rate is 3 percent. State X insurers are required to pay the 3 percent rate on business written in State Y
State X requires insurers from State Y to pay a 3 percent premium tax on business written in State X, even though the premium tax rate is only 2 percent in State X. This practice is known as a A) tax tariff. B) guaranty fund assessment. C) risk-based capital requirement. D) retaliatory tax law.