State X's Premium Tax Rate Is 2 Percent

question 7

Multiple Choice

State X's premium tax rate is 2 percent.State Y's premium tax rate is 3 percent.State X insurers are required to pay the 3 percent rate on business written in State Y.State X requires insurers from State Y to pay a 3 percent premium tax on business written in State X,even though the premium tax rate is only 2 percent in State X.This practice is known as a

• A)tax tariff.
• B)guaranty fund assessment.
• C)risk-based capital requirement.
• D)retaliatory tax law.

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Definitions:

Smiling

The act of expressing happiness, friendliness, or amusement through curving the lips upward.

Imitates

To copy or mimic the actions, behaviors, or characteristics of someone or something.

Modeling

A learning process where individuals learn how to act or perform by observing others.

Smoking Behavior

Patterns or habits associated with the consumption of tobacco products.