Question

What are the main purposes of the 'File and Use' system in insurance regulation?

a.

To ensure rapid introduction of products and maximize profits

b.

To guarantee that products benefit the common man and ensure insurer solvency

c.

To minimize innovation and restrict insurer freedom

d.

To encourage technical analysis by regulators

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).To guarantee that products benefit the common man and ensure insurer solvency Explanation:The main purposes of the 'File and Use' system in insurance regulation are to ensure that products benefit the common man and attract buyers while ensuring insurer solvency.

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Q. What are the main purposes of the 'File and Use' system in insurance regulation?
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