Which One of the Following Is an Argument for Federal

question 2

Multiple Choice

Which one of the following is an argument for federal regulation of the insurance transaction?

• A)if there were federal regulation, state regulation would still be required for intrastate transactions
• B)state regulation allows experimentation and isolation of bad laws
• C)many states do not have enough trained people to regulate insurance efficiently
• D)all of the above

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Definitions:

Ratios

Financial metrics used to make comparisons between different aspects of a company's performance or financial position, to assess its health, efficiency, and profitability.

Basic Earning Power Ratio

A financial metric that indicates how well a company's assets are generating income before the effects of taxes and financing costs.

Financial Leverage

The extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure. If a high percentage of a firm’s capital structure is in the form of debt and preferred stock, then the firm is said to have a high degree of financial leverage.

Tax Effects

The impact of taxation on an individual's or company's financial decisions or situations, especially regarding how investments and financial strategies are structured.