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:

Market Survey

A research method used to collect information about consumers' needs and preferences in a specific market.

Business Plan

A detailed document outlining the strategy, objectives, financial projections, and operational guidelines for a business to achieve its goals.

Managerial Competencies

The skills, knowledge, and abilities required by managers to effectively perform their roles.

Management Processes

The series of actions and methodologies implemented by an organization's leadership to achieve its objectives and maintain operational efficiency.