Which of the Following Is NOT a Differentiation Between Deposit

question 79

Multiple Choice

Which of the following is NOT a differentiation between deposit insurance and state guaranty funds for the insurance industry?

• A)The required contributions provided by surviving insurers differs widely across states.
• B)The annual pro rata contributions often are legally capped for each insurer as a percent of premium income.
• C)A permanent guaranty fund does not exist for the insurance industry.
• D)Contributions by surviving firms into the guaranty fund occur before an insurance company has failed.
• E)The programs that are sponsored by state insurance regulators are administered by private insurance companies.

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Definitions:

Three Wire Wye

A three-phase power configuration where three branches in a circuit are connected at a common point, resembling the letter Y.

High Leg

In electrical systems, a term referring to a conductor in a delta connection that has a higher voltage with respect to ground than the other two conductors.

Open Delta

A transformer connection method using two transformers to form a delta configuration, typically used when one transformer of a three-phase system is out of service or for economy in a lightly loaded system.

Single-Phase Loads

Equipment that operates on a single alternating current (AC) power phase, usually seen in residential and light commercial settings.