Because of the Doctrine of Federal Supremacy

question 10

Multiple Choice

Because of the doctrine of federal supremacy,

• A) no state may impose a regulation if there is an existing federal law to cover the problem.
• B) no state law may impose a stricter standard than a federal law.
• C) state statutes may impose standards that are stricter than federal laws unless the federal law is in an area where Congress wants there to be no state regulation.
• D) both a and b.

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Definitions:

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable alternatives in transactions, commonly seen in insurance markets.

Insurance Companies

Organizations that provide insurance policies to consumers, covering a variety of risks in exchange for premiums.

Insurance Company

A business entity that provides financial protection against losses and risks in exchange for premiums.

Property Loss

The term refers to the loss or damage of property due to various risks such as fire, theft, or natural disasters.