Question

Which of the following statements is true?
A. Insurers have full discretion on insurance premium rates
B. Reinsurance allows the insurer to cede its obligations to the insured
C. In the US,
most insurance regulation originates at state level
D. Designation as a nonbank SIFI inevitably leads to more regulation for an insurance company
E. Designation as a G-Sll exempts an insurer from more onerous regulatory requirements​

Answer 1

Answer:

1) TRUE

2) TRUE

3)FALSE

4)TRUE

5)FALSE

Answer 2

Answer:

A. True:

Regarding insurance premium costs, insurers have complete choice.

B.TRUE

Reinsurance, the insurer is able to transfer responsibility to the insured.

C.TRUE

• States control the regulation of insurance.
• The McCarran-Ferguson Act of 1945, which explicitly grants state control and taxation of the industry precedence over federal law by describing it as being in "the public interest," is the source of this system of regulation.
• Every state has a unique collection of laws and regulations.

D.TRUE

Being classified as a nonbank an insurance company will definitely face additional regulation as a result of SIFI.

E.FALSE

Based on data from the end of 2020 and an assessment process created by the Basel Committee on Banking Supervision, the 2021 list of globally systemic banks (G-SIBs) was created (BCBS)

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