One Method of Ensuring the Solvency of Insurers Is a Periodic

question 51

Multiple Choice

One method of ensuring the solvency of insurers is a periodic review,every three to five years,of insurers that operate on a multistate basis.This review is coordinated by the NAIC.This review is called a(n)

• A)annual report.
• B)early warning system.
• C)field examination.
• D)inspection report.

---

Definitions:

Acquiring Firms

Companies that purchase a majority stake in other companies to take over their operations.

Synergistic Benefits

Gains realized from the combination or cooperation of different groups, systems, or companies, where the result is greater than the sum of their separate effects.

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.