Principles of Risk Management and Insurance, 13th Edition

Review Questions

1. Explain why the insurance industry is regulated.

2. Briefly explain the significance of the following legal cases and legislative acts with respect to insurance regulation:

   1. Paul v. Virginia

   2. South-Eastern Underwriters Association Case

   3. McCarran-Ferguson Act

   4. Financial Modernization Act of 1999

3. Explain the principal methods for regulating insurance companies.

4. Identify the principal areas of insurance company operations that are regulated by the states.

5. Briefly describe the major types of rating laws.

6. Explain the following actions by agents that are prohibited by state law:

   1. Twisting

   2. Rebating

7. 1. 7. a.

      Explain the major arguments for federal regulation of the insurance industry.

   2. b.

      Explain the major arguments in support of state regulation ...