State Insurance Regulators Have Sometimes Reacted by Passing Rules That

question 2

Multiple Choice

State insurance regulators have sometimes reacted by passing rules that attempt to set low premiums for insurance. But over time, ___________________________ must hold: the average amount received by individuals must equal the average amount paid in premiums.

• A) the fundamental law of caveat emptor
• B) the fundamental law of insurance
• C) the fundamental principle of profitability
• D) the fundamental principle of actuarial fairness

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Definitions:

Performance Orientation

A focus on achieving excellence and high performance in tasks, whether individually or by groups.

Robert House

An influential figure in the field of organizational psychology, known for his path-goal theory of leadership that focuses on how leaders motivate subordinates to achieve their goals.

GLOBE Project

A research program focusing on culture and its impact on leadership and organizational effectiveness, involving over 170 researchers worldwide.

Quotas

Pre-determined targets or minimum requirements that must be met within a specified time frame, often used in sales, production, or employment contexts.