Which of the Following Statements About the Licensing of Insurance

question 56

Multiple Choice

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

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Definitions:

Value Chain

This concept describes the full range of activities that businesses go through to bring a product or service from conception to delivery to the final consumer.

Transformational Chain

The interconnected steps or processes that lead to a significant change or metamorphosis in an organization or system.

Materials Requirement Plan

A system used in manufacturing to coordinate the supply of materials with production schedules to ensure that materials are available when needed.

Contingency Theories

A class of behavioral theory that contends that there is no one best way of organizing a corporation, leading a company, or making decisions, instead it depends on various situational factors.