Author: Anonymous

Under one type of rate regulation, insurers do not have to register their rates with state regulatory authorities. However, insurers may be required to furnish rate schedules and supporting data to state officials. A fundamental assumption underlying this type of rating law is that market forces will determine the price and availability of insurance, rather than discretionary acts of regulators. This type of rate regulation is called

The regulation of insurers in areas that affect consumers, which include claims handling, underwriting, complaints, advertising, sales practices, and other trade practices is called

Most insurance companies require their marketing representatives to submit an evaluation of the prospective insured. This important source of underwriting information is called the

Match the term with an appropriate definition.

Which of the following statements about mutual insurers is true?

Cathy just started a job with XYZ Manufacturing Company. She attended an orientation and was given a packet providing information about the various employee benefits XYZ offers. One item in the packet was a booklet and application form from an auto insurer. The insurer offers lower premiums to XYZ employees. The insurer’s plan for selling individually-underwritten auto insurance to employees of XYZ Manufacturing Company is called

When must an insurable interest legally exist in property insurance for an insured to receive payment for a loss from the insurer?

Which of the following statements about Lloyds of London (are) true? I.The majority of the business underwritten by Lloyds of London is for unusual risks, such as valuable race horses and professional athletes. II.Lloyds of London is a group of underwriters who underwrite insurance, not an insurance company.

Which of the following statements about the licensing of insurance companies is (are) true?I.A new capital stock insurer must meet minimum capital and surplus requirements, which vary by state and line of insurance.II.The licensing requirements for insurance companies are less stringent than those imposed on most other types of firms.

One method through which reinsurance is provided is through an organization of insurers that underwrites insurance on a joint basis. Through the organization, financial capacity is available for large commercial risks. This reinsurance arrangement is a(n)