Question

What distinguishes insurance regulation from regulation in other branches of finance or economics?

a.

Insurance contracts allow insurers to keep the premium with them regardless of loss

b.

Insurers have control over the insured's money for short periods

c.

Insurance contracts involve reimbursement for loss in the event of a loss

d.

Insurance contracts are not legally binding

Posted under IC 14 Regulations of Insurance Business

Answer: (c).Insurance contracts involve reimbursement for loss in the event of a loss Explanation:The distinguishing feature of insurance regulation is that insurance contracts involve a promise of indemnification (reimbursement for loss) in the event of a loss, and insurers are obligated to fulfill this promise when the loss occurs.

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Q. What distinguishes insurance regulation from regulation in other branches of finance or economics?
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