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

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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