Life Insurance Regulatory Environment

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What is the main purpose of regulation in the insurance market?

To reduce the number of insurers

To increase consumer confidence (correct)

To limit product innovation

To maximize profits for insurance companies

Which of the following is a regulatory restriction on insurance premium rates?

Freedom to use any rating factor for premiums

Use of gender in premium calculations (correct)

Unrestricted variation in premium charges

No restriction on channels for sales

What might be a potential indirect cost of regulation in the insurance market?

More insurers entering the market

Increased consumer confidence

Less product innovation (correct)

Higher profitability for insurers

What type of underwriting practice might be prohibited by regulations?

Use of genetic testing Signup and view all the answers

What area of insurance operations might regulations require disclosure and mitigation of climate risks?

Investment strategies Signup and view all the answers

Why does regulation aim to protect consumers in the insurance market?

To increase consumer confidence and encourage sales Signup and view all the answers

What is a potential indirect cost of regulation in the insurance market?

Fewer insurers on the market and less product innovation Signup and view all the answers

Which of the following is a regulatory restriction on insurance premium rates?

The premium rates or charges that can be used on some type of product Signup and view all the answers

What might regulations require disclosure and mitigation of in the area of insurance operations?

Climate risks Signup and view all the answers

What type of underwriting practice might regulations prohibit?

The use of gender in calculating premiums Signup and view all the answers

Life Insurance Regulatory Environment

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Questions and Answers

What is the main purpose of regulation in the insurance market?

Which of the following is a regulatory restriction on insurance premium rates?

What might be a potential indirect cost of regulation in the insurance market?

What type of underwriting practice might be prohibited by regulations?

What area of insurance operations might regulations require disclosure and mitigation of climate risks?

Why does regulation aim to protect consumers in the insurance market?

What is a potential indirect cost of regulation in the insurance market?

Which of the following is a regulatory restriction on insurance premium rates?

What might regulations require disclosure and mitigation of in the area of insurance operations?

What type of underwriting practice might regulations prohibit?

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