The Risk-Based Capital Requirements for Life Insurers Are Based on a Formula

question 25

Multiple Choice

The risk-based capital requirements for life insurers are based on a formula that considers four types of risk.One risk reflects whether the insurer will have enough surplus if claims are higher than expected.This risk is called

• A)asset risk.
• B)insurance risk.
• C)interest rate risk.
• D)business risk.

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Definitions:

Model Rules of Professional Conduct

A set of ethical guidelines adopted by the American Bar Association for attorneys to ensure their behavior aligns with professional standards.

American Bar Association

A large voluntary association of lawyers and law students in the United States, which sets academic standards for law schools and formulates ethical codes for the legal profession.

Attorney's Conduct

The behavior and actions that are expected, regulated, or legally required of a lawyer in their professional practice.

Proximate Cause

A legal concept that establishes the cause of an injury as being sufficiently related to an actionable event or condition to justify liability.