Which of the Following Statements About the Use of Risk-Based

question 4

Multiple Choice

Which of the following statements about the use of risk-based capital requirements is (are) true?
I.Insurers must have a certain amount of capital depending on the riskiness of their investments and insurance operations.
II.Insurers may be required to take certain actions depending on how much capital they have relative to their risk-based capital requirements.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Major Depressive Disorder

A mental disorder characterized by a pervasive and persistent low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.

Diagnostic Tests

Procedures and tests used to identify the nature or cause of a health condition or disease.

Spiritual Distress

A state of suffering related to the impaired ability to experience and integrate meaning and purpose in life through connectedness with self, others, art, music, literature, nature, or a power greater than oneself.

Vegetative Signs

Physical symptoms primarily involving disruptions to sleep, eating habits, energy, and sexual activity, often associated with major depressive disorder.