Which one of the following is true regarding the administration of the Insurance Regulatory Information System (IRIS)?

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Which one of the following is true regarding the administration of the Insurance Regulatory Information System (IRIS)?

A. If the insurer has financial ratios that are inside predetermined norms, IRIS identifies the company for regulatory attention.
B. If regulators determine that an insurer is insolvent, the state insurance department places it in receivership.
C. If an insurer cannot be rehabilitated, the state's guaranty fund may be available to increase the effects of the insurer insolvency.
D. Under a special provision in state licensing laws, state regulators are empowered to completely take over an insurer at any time.

Answer: B. If regulators determine that an insurer is insolvent, the state insurance department places it in receivership. If an insurer cannot be rehabilitated, the state's guaranty fund may be available to reduce the effects of the insurer insolvency.

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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The pro rata liability clause is designed to protect the principle of
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A domestic insurer issuing variable contracts must establish one or more
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Which of the following best defines target premium in a universal life policy?
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A beneficiary change can occur
No existing agent's license will be revoked until
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In an insurance contract, the applicant's "consideration" is the
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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
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Life income joint and survivor settlement option guarantees
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