Which of the Following Statements About the Regulation of Life

question 17

Multiple Choice

Which of the following statements about the regulation of life insurance companies is (are) true?
I.The percentage of assets a life insurance company may invest in a specific type of asset (e.g. ,stocks or bonds) is generally limited by law.
II.The purpose of limiting the accumulation of surplus is to prevent an insurer from increasing its surplus at the expense of policyowner dividends.

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

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Definitions:

Social Activism

The act of advocating for, supporting, or practicing efforts to facilitate changes in society through various forms of political, economic, or environmental campaigning.

Group's Cohesion

The strength of the relationships linking the members of a group to one another and to the group itself.

Major Problem

A significant or complex issue that requires considerable effort or resources to solve.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.