Question

What is the regulatory requirement for maintaining the solvency ratio by insurers?

a.

Maintain a solvency ratio of at least 100%

b.

Maintain a solvency ratio of at least 75%

c.

Maintain a solvency ratio of at least 150%

d.

Maintain a solvency ratio of at least 200%

Answer: (c).Maintain a solvency ratio of at least 150% Explanation:Regulators typically require insurers to maintain a solvency ratio of at least 150%, which serves as a trigger point for regulatory action and provides an early warning signal about the insurer's solvency.

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Q. What is the regulatory requirement for maintaining the solvency ratio by insurers?

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