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.

Which of the following statements about reciprocal exchanges is (are) true?I.Reciprocal exchanges usually specialize in health insurance.II.Reciprocal exchanges are unincorporated mutual insurance companies.

The major argument in favor of an optional federal charter for insurers is that

Why are some mutual insurers referred to as “assessment mutuals”?

Which of the following statements about state insurance guaranty funds is (are) true?I.They limit the amount that policyholders can collect if an insurer becomes insolvent.II.They are usually funded by general revenues of the states.

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

An insurance company chartered in another country has been licensed to operate in your state. In your state, the insurer would be considered a(n)

The percentage change in demand per a percentage change in advertising would be called the

What is the practical effect of an insurance contract being a contract of adhesion?

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance (RSR). Granite’s retention limit is $400,000 and RSR agreed to provide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy, RSR is responsible for 50 percent of the losses. If Granite insures a $1.6 million risk, RSR is responsible for 25 percent of any losses. What type of reinsurance arrangement did Granite enter into with RSR?