瑞达Rejda保险教材英文练习题08.docxVIP

Principles of Risk Management and Insurance, 11(Reejda) Chapter 8 Government Regulation of Insurance 1) Reasons for regulation of insurance include which of the following? I. Maintaining insurer solvency. II. Ensuring reasonable rates. A) I only B) II only C) both I and II D) neither I nor II Answer: C Question Status: Previous Edition 2) The right of the states to regulate the business of insurance was first established by A) the South-Eastern Underwriters Association case. B) Paul v. Virginia. C) the Financial Modernization Act. D) the Sherman Act. Answer: B Question Status: Previous Edition 3) The basis for current state regulation of insurance is A) the McCarran-Ferguson Act. B) Paul v. Virginia. C) the South-Eastern Underwriters Association case. D) the National Association of Insurance Commissioners. Answer: A Question Status: Previous Edition 4) All of the following statements about the methods of regulating insurance are true EXCEPT A) All states have insurance laws that regulate the operations of insurers. B) Insurers are totally exempt from regulation by federal agencies and laws. C) The courts regulate insurance in many ways, including the interpretation of policy clauses and provisions. D) State insurance commissioners, through administrative rulings, have considerable power over insurers doing business in their states. Answer: B Question Status: Previous Edition 1 Copyright ? 2011 Pearson Education, Inc. 5) 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. A) I only B) II only C) both I and II D) neither I nor II Answer: A Question Status: Previous Edition 6) An insurance company incorporated in another state has been licensed to operate in your state. In your state,