瑞达 Rejda 保险教材英文练习题08.docx
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瑞达Rejda保险教材英文练习题08
PrinciplesofRiskManagementandInsurance,11e(Rejda)
Chapter8GovernmentRegulationofInsurance
1)Reasonsforregulationofinsuranceincludewhichofthefollowing?
I.Maintaininginsurersolvency.
II.Ensuringreasonablerates.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
C
QuestionStatus:
PreviousEdition
2)Therightofthestatestoregulatethebusinessofinsurancewasfirstestablishedby
A)theSouth-EasternUnderwritersAssociationcase.
B)Paulv.Virginia.
C)theFinancialModernizationAct.
D)theShermanAct.
Answer:
B
QuestionStatus:
PreviousEdition
3)Thebasisforcurrentstateregulationofinsuranceis
A)theMcCarran-FergusonAct.
B)Paulv.Virginia.
C)theSouth-EasternUnderwritersAssociationcase.
D)theNationalAssociationofInsuranceCommissioners.
Answer:
A
QuestionStatus:
PreviousEdition
4)AllofthefollowingstatementsaboutthemethodsofregulatinginsurancearetrueEXCEPT
A)Allstateshaveinsurancelawsthatregulatetheoperationsofinsurers.
B)Insurersaretotallyexemptfromregulationbyfederalagenciesandlaws.
C)Thecourtsregulateinsuranceinmanyways,includingtheinterpretationofpolicyclausesandprovisions.
D)Stateinsurancecommissioners,throughadministrativerulings,haveconsiderablepoweroverinsurersdoingbusinessintheirstates.
Answer:
B
QuestionStatus:
PreviousEdition
5)Whichofthefollowingstatementsaboutthelicensingofinsurancecompaniesis(are)true?
I.Anewcapitalstockinsurermustmeetminimumcapitalandsurplusrequirements,whichvarybystateandlineofinsurance.
II.Thelicensingrequirementsforinsurancecompaniesarelessstringentthanthoseimposedonmostothertypesoffirms.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
A
QuestionStatus:
PreviousEdition
6)Aninsurancecompanyincorporatedinanotherstatehasbeenlicensedtooperateinyourstate.Inyourstate,theinsurerwouldbeconsidereda(n)
A)nonadmittedinsurer.
B)foreigninsurer.
C)alieninsurer.
D)reciprocalinsurer.
Answer:
B
QuestionStatus:
PreviousEdition
7)Aninsurancecompanycharteredinanothercountryhasbeenlicensedtooperateinyourstate.Inyourstate,theinsurerwouldbeconsidereda(n)
A)nonadmittedinsurer.
B)foreigninsurer.
C)alieninsurer.
D)reciprocalinsurer.
Answer:
C
QuestionStatus:
PreviousEdition
8)Whichofthefollowingisconsideredanonadmittedassetforaninsurer?
A)cash
B)preferredstocks
C)realestate
D)officefurniture
Answer:
D
QuestionStatus:
PreviousEdition
9)Thepolicyholders'surplusofaninsurerisdefinedasthedifferencebetweenits
A)assetsanditsliabilities.
B)premiumincomeanditsexpenses.
C)reservesanditsliabilities.
D)assetsanditsnonadmittedassets.
Answer:
A
QuestionStatus:
PreviousEdition
10)Whichofthefollowingstatementsabouttheuseofrisk-basedcapitalrequirementsis(are)true?
I.Insurersmusthaveacertainamountofcapitaldependingontheriskinessoftheirinvestmentsandinsuranceoperations.
II.Insurersmayberequiredtotakecertainactionsdependingonhowmuchcapitaltheyhaverelativetotheirrisk-basedcapitalrequirements.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
C
QuestionStatus:
PreviousEdition
11)Whichofthefollowingstatementsabouttheregulationofinsurancecompanyinvestmentsis(are)true?
I.Thepurposeofregulatinginsurancecompanyinvestmentsistopreventinsurersfrommakingunsoundinvestmentswhichcouldthreatentheirsolvency.
II.Lifeinsurerscaninvestanunlimitedamountoftheirassetsincommonstocks.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
A
QuestionStatus:
PreviousEdition
12)Whichofthefollowingstatementsabouttheregulationoflifeinsurancecompaniesis(are)true?
I.Thepercentageofassetsalifeinsurancecompanymayinvestinaspecifictypeofasset(e.g.,stocksorbonds)isgenerallylimitedbylaw.
II.Thepurposeoflimitingtheaccumulationofsurplusistopreventaninsurerfromincreasingitssurplusattheexpenseofpolicyownerdividends.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
C
QuestionStatus:
PreviousEdition
13)Whichofthefollowingstatementsaboutstateinsuranceguarantyfundsis(are)true?
I.Theylimittheamountthatpolicyownerscancollectifaninsurerbecomesinsolvent.
II.Theyareusuallyfundedbygeneralrevenuesofthestates.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
A
QuestionStatus:
PreviousEdition
14)Underonetypeofrateregulation,insurersarenotrequiredtofiletheirrateswiththestateinsurancedepartment.However,insurersmayberequiredtofurnishrateschedulesandsupportingdatatostateofficials.Afundamentalassumptionunderlyingthistypeofratinglawisthatmarketforceswilldeterminethepriceandavailabilityofinsurance,ratherthandiscretionaryactsofregulators.Thistypeofrateregulationiscalled
A)aflex-ratinglaw.
B)aprior-approvallaw.
C)afile-and-uselaw.
D)nofilingrequired.
Answer:
D
QuestionStatus:
Revised
15)Underwhattypeofrateregulationareinsurersrequiredtoobtainapprovalofratesbeforeusingthemiftheratechangeexceedsaspecifiedpredeterminedrange?
A)flex-ratinglaw
B)prior-approvallaw
C)file-and-uselaw
D)use-and-filelaw
Answer:
A
QuestionStatus:
Revised
16)Bymisrepresentingthetruefacts,GretchenwasabletoconvinceaclienttodropalifeinsurancepolicywithanothercompanyandtopurchaseapolicyfromthecompanythatGretchenrepresents.Gretchenhasengagedinanillegalsalespracticecalled
A)baitandswitch.
B)rebating.
C)retaliating.
D)twisting.
Answer:
D
QuestionStatus:
PreviousEdition
17)Whichofthefollowingstatementsaboutpremiumtaxesis(are)true?
I.TheyareleviedbythefederalgovernmentasaresultoftheMcCarran-FergusonAct.
II.Theirprimarypurposeistoprovidefundsforinsuranceregulation.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
D
QuestionStatus:
PreviousEdition
18)AdvantagescitedbyproponentsoffederalregulationofinsuranceincludeallofthefollowingEXCEPT
A)greaterefficiency.
B)greateropportunityforinnovation.
C)uniformityoflaws.
D)morecompetentregulators.
Answer:
B
QuestionStatus:
PreviousEdition
19)AdvantagescitedbyproponentsofstateregulationofinsuranceincludeallofthefollowingEXCEPT
A)uniformityoflawsbytheNAIC.
B)greateropportunityforinnovation.
C)greaterresponsivenesstolocalneeds.
D)centralizationofpoliticalpower.
Answer:
D
QuestionStatus:
PreviousEdition
20)ShortcomingsofstateregulationofinsurancefoundbyCongressionalcommitteesandtheGeneralAccountingOfficeincludeallofthefollowingEXCEPT
A)inadequateprotectionofconsumers.
B)inadequatemarketconductexaminations.
C)inabilitytorespondtouniquelocalneeds.
D)regulator'sover-responsivenesstotheinsuranceindustry.
Answer:
C
QuestionStatus:
PreviousEdition
21)Themajorreasonsforinsurerinsolvencyincludewhichofthefollowing?
I.Inadequatepricingandlossreserves.
II.Rapidgrowthandinadequatesurplus.
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII
Answer:
C
QuestionStatus:
PreviousEdition
22)TheprincipalmethodsofensuringinsurersolvencyincludeallofthefollowingEXCEPT
A)SecurityandExchangeCommissionoversightofinvestments.
B)risk-basedcapitalstandards.
C)fieldexaminations.
D)reviewofrequiredannualfinancialstatements.
Answer:
A
QuestionStatus:
PreviousEdition
23)WhichofthefollowingisanargumentforrepealingtheMcCarran-FergusonAct?
A)Itwouldmakeiteasierforsmallinsurerstocompete.
B)Itwouldencouragesharingofinformation.
C)Itwouldmakeiteasiertodevelopcommoncoverageforms.
D)Itwouldcorrectfordefectsinstateregulation.
Answer:
D
QuestionStatus:
PreviousEdition
24)ThenumberoftitleinsurancecompaniesoperatinginStateZisrelativelylow.Recently,thelargestofthesecompanies(50percentmarketshare)acquiredthesecondlargestcompany(30percentmarketshare).Immediatelyaftertheacquisition,theinsurerraisedpremiumsby75percent.Thisscenariodemonstrateswhichofthefollowingrationalesfortheregulationofinsurance?
A)maintaininsurersolvency
B)compensateforinadequateconsumerknowledge
C)ensurereasonablerates
D)makeinsuranceavailable
Answer:
C
QuestionStatus:
PreviousEdition
25)InwhichofthefollowingdidtheCourtdecidethatinsurancewasinterstatecommercewhenconductedacrossstatelines,andthereforewassubjecttofederalregulation?
A)Paulv.Virginia
B)South-EasternUnderwritersAssociationcase
C)McCarran-FergusonAct
D)FinancialModernizationAct
Answer:
B
QuestionStatus:
PreviousEdition
26)AlifeinsurancecompanybasedinCanadawaslicensedtooperateinMassachusetts.WhenoperatinginMassachusetts,theCanadianinsurerwouldbeconsidereda(n)
A)domesticinsurer.
B)captiveinsurer.
C)foreigninsurer.
D)alieninsurer.
Answer:
D
QuestionStatus:
PreviousEdition
27)XYZMutualInsuranceCompanyhastotalassetsof$10million.Thepolicyholders'surplusis$2million.WhatareXYZMutual'stotalliabilities?
A)$4.0million
B)$8.0million
C)$10.0million
D)$12.0million
Answer:
B
QuestionStatus:
PreviousEdition
28)MutualPropertyInsuranceCompanyhasasurplusof$2million.Accordingtoaconservativeruleofthumb,howmuchnewnetpremiumscanMutualPropertyInsuranceCompanysafelywrite?
A)$2million
B)$8million
C)$10million
D)$20million
Answer:
A
QuestionStatus:
Prev