Rate Increases and Price Hikes Should Always Be Communicated in a Written

question 42

True/False

Rate increases and price hikes should always be communicated in a written letter, and never announced online.

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Definitions:

Shareholder Value

The value delivered to shareholders because of management's ability to grow earnings, dividends, and share price.

RAP

Regulatory Accounting Principles, which are guidelines for accounting practices in the insurance industry.

Loan Charge-offs

The process by which a bank or other financial institution removes a loan from its balance sheet after determining that it will not be repaid and is, therefore, uncollectible.

Bank Capital

The funds that are held by a bank that are used as a cushion against potential losses, ensuring the bank's stability and financial health.