All of the Following Statements About Regulatory Objectives of Insurance

question 36

Multiple Choice

All of the following statements about regulatory objectives of insurance rate making are true EXCEPT

• A)One purpose of rate adequacy is to maintain the solvency of insurers.
• B)Rates unfairly discriminate if loss exposures that are similar with respect to losses and expenses are charged substantially different rates.
• C)Insurers know in advance if the coverages marketed will be profitable,so rate regulation is not needed.
• D)Rates are excessive if policyholders are paying substantially more than the actual value of their protection.

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Definitions:

Hyperpnea

An increased depth and rate of breathing, often in response to exercise or the body's need for more oxygen.

Aneroid Sphygmomanometers

A type of blood pressure monitor that uses a mechanical gauge without the need for mercury to measure blood pressure.

Auscultated Blood Pressure

Blood pressure as measured by listening with a stethoscope.

Palpatory Method

A technique used in medicine to feel the body with hands to determine the size, consistency, and location of certain body parts or abnormalities.