To terminate an insurance policy by failing to make the required premium payments is known as forfeiting.?

The McCarran-Ferguson Act of 1945

A. separated commercial banking from insurance activities. B. mandated federal insurance company charters. C. stipulated that insurance companies are to be regulated at the state level. D. initiated a national insurance guaranty fund. E. limited insurance company assets to low risk government securities.

Profit maximization is NOT an adequate goal of the firm when making financial decisions because:

A) it does not necessarily reflect shareholder wealth maximization. B) it ignores the risk inherent in different projects that will generate the profits. C) it can over-emphasize a project's short-term returns. D) All of the above.