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2. Regulation of insurance companies The Insurance regulatory system is designed to identify financial issues of an Insurance company and propose solutions for recovery Which of the following characteristics are assessed to detect such issues? Check all that apply. The operational efficiency of the insurer The ability of the insurer to withstand unexpected or excessive claims The ability of the insurer to maintain customer profiles The insurer's return on investment The ability of the insurer to obtain reinsurance on most of their risks Which of the following is true regarding insurance regulation? Check all that apply. The risk-based capital ratio is used to identity insurance companies with low risk exposure and force them to hold a high level of capital If an insurance company becomes insolvent, state guaranty funds are used to pay outstanding claims Insurance agents must be licensed in order to sell Insurance products. United States-based insurance companies that expand their business internationally are subject to foreign insurance regulations, Which of the following permitted banks the ability to sell insurance? : The Financial Services Modernization Act The Sarbanes-Oxley Act The Glass-Steagall Act The Financial Reform Act of 2010

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