瑞达 Rejda 保险教材英文练习题08.docx

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