RMIN 2005 Chapter 13 Exam Questions
and Answers Graded A+
Why is the insurance industry more heavily regulated than many other industries?
Insurance contracts are difficult for the average person to understand
The nature of insurance creates the potential for unethical behavior
People are legally required to purchase some insurance products
All of the above - Correct answer-All of the above
What is the temptation for insurers to charge too little for insurance and why is it a
problem? - Correct answer-To increase their market share; it is a problem because
they might not collect enough to pay claims
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, Which of the following is NOT one of the reasons insurance needs to be regulated
heavily?
The insurance industry is known to employ unethical people
The insurance product is intangible
Insurance is sometimes economically need as in when you get a loan
Insurance is complicated and most lay people don't understand it well - Correct
answer-The insurance industry is known to employ unethical people
Which of the following is true about insurance regulation before the 1850s? -
Correct answer-It was regulated by the states but it was not consistent from state to
state
The Paul v. Virginia and SEUA Supreme Court cases both hinged on the
determination of whether insurance should be considered interstate - Correct
answer-Commerce
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
and Answers Graded A+
Why is the insurance industry more heavily regulated than many other industries?
Insurance contracts are difficult for the average person to understand
The nature of insurance creates the potential for unethical behavior
People are legally required to purchase some insurance products
All of the above - Correct answer-All of the above
What is the temptation for insurers to charge too little for insurance and why is it a
problem? - Correct answer-To increase their market share; it is a problem because
they might not collect enough to pay claims
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Which of the following is NOT one of the reasons insurance needs to be regulated
heavily?
The insurance industry is known to employ unethical people
The insurance product is intangible
Insurance is sometimes economically need as in when you get a loan
Insurance is complicated and most lay people don't understand it well - Correct
answer-The insurance industry is known to employ unethical people
Which of the following is true about insurance regulation before the 1850s? -
Correct answer-It was regulated by the states but it was not consistent from state to
state
The Paul v. Virginia and SEUA Supreme Court cases both hinged on the
determination of whether insurance should be considered interstate - Correct
answer-Commerce
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
