#1
Which regulatory body oversees the insurance industry in the United States?
NAIC
ExplanationNational Association of Insurance Commissioners
#2
What does 'NAIC' stand for in the context of insurance regulation?
National Association of Insurance Commissioners
ExplanationAcronym for the governing body overseeing insurance in the US
#3
Which department within an insurance company is responsible for ensuring compliance with regulations?
Compliance
ExplanationDepartment overseeing adherence to regulatory requirements
#4
Which regulatory body oversees insurance companies in the United Kingdom?
FCA
ExplanationFinancial Conduct Authority
#5
What is the primary purpose of insurance regulation?
To protect policyholders and ensure financial stability
ExplanationEnsuring policyholder protection and financial security
#6
Which law requires insurance companies to explain insurance policies in clear language?
ERISA
ExplanationEmployee Retirement Income Security Act
#7
What is the purpose of the 'Solvency II' directive in Europe?
To ensure insurance companies have adequate capital reserves
ExplanationDirective ensuring insurance companies maintain sufficient capital
#8
What is the purpose of 'Know Your Customer' (KYC) regulations in the insurance industry?
To verify the identity of policyholders
ExplanationRegulations ensuring policyholder identity verification
#9
What is 'fiduciary responsibility' in the context of insurance?
Ensuring fair treatment of policyholders' funds
ExplanationObligation to manage policyholders' funds ethically
#10
Which of the following is not typically covered by a life insurance policy?
Medical expenses
ExplanationCoverage usually excluded from life insurance policies
#11
What does 'AML' refer to in the insurance industry?
Anti-Money Laundering
ExplanationMeasures to prevent illicit financial activities
#12
What is the purpose of 'reserving' in insurance?
To estimate future claims and liabilities
ExplanationProcess of estimating future financial obligations
#13
What is 'regulatory arbitrage' in the insurance industry?
Taking advantage of gaps or differences in regulations to reduce costs or increase profits
ExplanationExploiting regulatory variations for financial gain
#14
What is a 'policyholder dividend'?
A portion of the insurance company's profits distributed to policyholders
ExplanationShare of insurer's profits distributed to policyholders
#15
What does 'accelerated death benefit' mean in life insurance?
A benefit paid to the beneficiary before the insured's death if diagnosed with a terminal illness
ExplanationPre-death payment due to terminal illness diagnosis