Session 2 Insurance Regulations

Early records of insurance is available in __________

• Manusmriti

• Yagnavalkya’s Dharmashastra

• Kautilya’s Arthashastra

• All of the Above

Traders in China has been using _______ mechanisms over 7000 years ago

• Risk Analysis

• Risk Management

• Risk Reduction

• Risk Identification

Which of the following is considered as the importance of the insurance industry?

• Protecting policyholders and society in general against excessive insurer insolvency risk

• It creates a million direct jobs.

• It ensures fair and reasonable insurance prices, products and trade practices in order to protect consumers.

• Improved financial monitoring systems

Early evidence of insurance has been found in Code of Hammurabi

• True

• False

Why should insurance be regulated?

• To avoid 2008 sub-prime crisis from happening again

• To establish policy holder protection and focus on solvency to pay claims

• To promote insurance to consumers.

• All of the Above

Insurance industry started with small , local carriers who were regulated at ______ level

• International

• Inter-State

• State

• National

The property and casualty industry’s profile has changed from

___-tail to ___-tail exposures

• short, long

• big , small

• long , short

• small , big

In metamorphosis of insurance industry over 200 years, Unnatural perils such as terrorism and financial misfeasance have increased

• True

• False

In history of Regulation, insurers bound to ________ traditionally.

• State

• Inter-State

• Local Community

• National Level

In history of Regulation, the focus of initial regulation is ____.

• company admission/ licensing

• financial monitoring systems

• focused on the development of common financial reporting requirements for insurers.

• insurers who became notorious for high expenses, shaky finances and abusive sales practices.