All of the Following Are Methods Helping to Insure the Solvency

question 38

Multiple Choice

All of the following are methods helping to insure the solvency of insurers EXCEPT

• A)commercial lines deregulation
• B)risk-based capital standards.
• C)the NAIC's early warning system.
• D)the NAIC's FAST screening system.

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Definitions:

Liquidity of Receivables

The ease with which accounts receivable can be converted into cash, reflecting the company's efficiency in managing credit sales.

Accounts Receivable

Financial obligations that clients have towards a company for goods or services delivered but still awaiting payment.

Bank Reconciliation

The process of comparing and adjusting an entity’s accounting records with the bank statements to ensure accuracy and consistency.

Monthly Basis

A regular interval or frequency of events or assessments occurring once every month.