In the Life Insurance Model, the Ratio of Total Surplus

question 86

True/False

In the life insurance model, the ratio of total surplus and capital to the risk-based capital calculation must be greater than or equal to 1.0 for the insurance company to be satisfactorily capitalized.

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Definitions:

Point-To-Point Service

A transportation or telecommunications service that directly connects two locations without any stops or transfers.

Variable Operating Costs

Expenses that fluctuate with the level of output or business activity.

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Intermodal Service

A transportation service that combines multiple modes of transport, such as rail, ship, and truck, to move goods efficiently from origin to destination.