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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.


Definitions:

Domestic Operations

Business activities and transactions that occur within a company's home country.

FIFO

"First In, First Out," an inventory management and valuation method assuming the first items acquired are the first ones sold.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for administrative and selling expenses.

Units

A measure of quantity or amount in accounting, production, or inventory management, often used to quantify items, products, or resources.

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