Question

What is one of the main aims of insurance regulators?

a.

To ensure that insurers always have a sufficient margin of assets over estimated liabilities appropriate to the business that they conduct.

b.

To increase the income from investment.

c.

To reduce the risk associated with catastrophic events.

d.

To reduce the need for reinsurance.

Answer: (a).To ensure that insurers always have a sufficient margin of assets over estimated liabilities appropriate to the business that they conduct. Explanation:One of the main aims of insurance regulators is to ensure that insurers always have a sufficient margin of assets over estimated liabilities appropriate to the business that they conduct.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is one of the main aims of insurance regulators?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is reinsurance?

Q. What is the technical risk in reinsurance?

Q. What is the contractual risk in reinsurance?

Q. What is the "Follow the Fortunes" clause in reinsurance?

Q. Which of the following can increase the risk run by the reinsurer?

Q. What is moral hazard in reinsurance?

Q. What is the responsibility of reinsurers in regard to rate of exchange risk?

Q. What task is one of the most important and most delicate tasks of the reinsurer?

Q. How does inflation affect technical statistics in insurance?

Q. What can affect the payment of foreign exchange and cash calls in reinsurance?

Q. What is the primary reason why reinsurers assume no responsibility for rate of exchange risk?

Q. Which of the following risks does inflation pose to reinsurance operations?

Q. What is the impact of special and unrealistic exchange controls on reinsurance operations?

Q. Why is the acquisition and underwriting results of a reinsurance insurer directly dependent on its quality?

Q. What is the principle on which the relationship between the insurer and reinsurer is based?

Q. Which type of reinsurance is based on the principle of "Uberrima fides"?

Q. What is the meaning of the term "Uberrima fides"?

Q. What happens when the ceding insurer is in financial difficulties or insolvent?

Q. What risks does the reinsurer run by granting cover to as many companies as possible?

Q. What is the principle that the relation between insurer and reinsurer is based on?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!