Regulation of Insurance Products (APIR) exam 2024
with correct answers
Describe the purpose and functional concepts of insurance and insurance
regulation with respect to the property & casualty, health, and life and
annuity lines of business. - ANSWER provide competitive rates without going
insolvent
Describe the purpose of insurance regulation. - ANSWER provide competitive rates
without going insolvent
Explain the purpose of insurance products from a consumer's perspective. -
ANSWER
Product design - ANSWER specific requirements for states that insurers are writing
policies in.
what can and cannot be done in the policy.
insurers need to know requirements so they can customize products.
Pricing - ANSWER Actuaries assist in establishing rate or premium based on:
probability theories
law of large numbers
loss cost for P&C
Distribution Channels - ANSWER captive producers/agents - under contract - sell
for only one insurer
independent producers - represent many insurers
brokers - represent clients buying insurance
direct writing marketing.- telephone solicitation, mail, internet
Underwriting - ANSWER the selection process used by insurers to determine what
products or business to write
determines what risks should and should not be accepted
determines policy exclusions, limits, and deductibles
Claim settlements - ANSWER the claimant notifies the insurer that they suffered a
loss
the claim is settled when it is either denied or paid, with or without legal action
Investment - ANSWER obtain a Certificate of Authority
CoA is given when insurer adequately satisfies reserve requirement
reserves can be invested but restriction may apply
Explain the purpose and function of the Product Filing Review Handbook. -
ANSWER provides basic information about the filing and review of rate, rule, and
form filings. It also explains basic rate making processes for those products that are
subject to various
, forms of rate regulation. It provides guidance in the form of procedures that states
can implement uniformly to make the filing process more transparent, to make it
easier for insurers to achieve compliance.
The Product Filing Review Handbook also provides a high-level overview of the
NAIC Speed-to-Market initiatives.
Handbook site Insurance Compact Website - ANSWER A transformative state-
based collaboration of regulators and legislators to streamline product approval
requirements and processes across the Compacting States.
Handbook site SERFF - ANSWER ABOUT THE SYSTEMS FOR ELECTRONIC
RATES & FORMS FILING (SERFF)
SERFF represents the state-of-the art for insurers and regulators seeking efficient
operations. The form submittal, document management and review access provided
by the platform accelerates the pace of market-entry for new and renewing products,
while ensuring compliance with consumer protection requirements.
Speed-to-Market initiatives provide - ANSWER The Speed-to-Market initiatives
provide a more
streamlined approach in the regulatory rate, rule, and form submission process,
while maintaining state-specific statutory requirements.
Identify important milestones in the history timeline of insurance regulation.1700-
1800 - ANSWER 1752 the Philadelphia Contributionship for the Insurance of
Houses from Loss by Fire became first mutual insurance company. It wasformed
with the help of Ben Franklin and incorporated in 1768
1800 Governments established initial mechanisms for regulation in the early 1800s
1851 First insurance commissioner elected in new hampshire
1869 Paul v. Virginia Corp.s are not citizens, issuing policy no a transaction of
commerce, effectively removing insurance beyond.Congress's legislative reach
1871 First meeting of the NAIC - created by state insurance regulators to coordinate
regulation of multistate insurers - unifirm financial reporting by insurance companies
Identify important milestones in the history timeline of insurance regulation.1900 -
ANSWER 1900s Price regulation began in the early 1900s across state lines
1752 - ANSWER 1st American insurer organized
1800 - ANSWER Governments establish early mechanism for regulation
1851 - ANSWER New Hampshire has first insurance commissioner
1871 - ANSWER First meeting NAIC
1900s - ANSWER Price regulation began
1944 - ANSWER U.S. v. South-Eastern Underwriters Association - overturned Paul,
ruled insurance is interstate commerce, subject to Sherman and Clayton acts
with correct answers
Describe the purpose and functional concepts of insurance and insurance
regulation with respect to the property & casualty, health, and life and
annuity lines of business. - ANSWER provide competitive rates without going
insolvent
Describe the purpose of insurance regulation. - ANSWER provide competitive rates
without going insolvent
Explain the purpose of insurance products from a consumer's perspective. -
ANSWER
Product design - ANSWER specific requirements for states that insurers are writing
policies in.
what can and cannot be done in the policy.
insurers need to know requirements so they can customize products.
Pricing - ANSWER Actuaries assist in establishing rate or premium based on:
probability theories
law of large numbers
loss cost for P&C
Distribution Channels - ANSWER captive producers/agents - under contract - sell
for only one insurer
independent producers - represent many insurers
brokers - represent clients buying insurance
direct writing marketing.- telephone solicitation, mail, internet
Underwriting - ANSWER the selection process used by insurers to determine what
products or business to write
determines what risks should and should not be accepted
determines policy exclusions, limits, and deductibles
Claim settlements - ANSWER the claimant notifies the insurer that they suffered a
loss
the claim is settled when it is either denied or paid, with or without legal action
Investment - ANSWER obtain a Certificate of Authority
CoA is given when insurer adequately satisfies reserve requirement
reserves can be invested but restriction may apply
Explain the purpose and function of the Product Filing Review Handbook. -
ANSWER provides basic information about the filing and review of rate, rule, and
form filings. It also explains basic rate making processes for those products that are
subject to various
, forms of rate regulation. It provides guidance in the form of procedures that states
can implement uniformly to make the filing process more transparent, to make it
easier for insurers to achieve compliance.
The Product Filing Review Handbook also provides a high-level overview of the
NAIC Speed-to-Market initiatives.
Handbook site Insurance Compact Website - ANSWER A transformative state-
based collaboration of regulators and legislators to streamline product approval
requirements and processes across the Compacting States.
Handbook site SERFF - ANSWER ABOUT THE SYSTEMS FOR ELECTRONIC
RATES & FORMS FILING (SERFF)
SERFF represents the state-of-the art for insurers and regulators seeking efficient
operations. The form submittal, document management and review access provided
by the platform accelerates the pace of market-entry for new and renewing products,
while ensuring compliance with consumer protection requirements.
Speed-to-Market initiatives provide - ANSWER The Speed-to-Market initiatives
provide a more
streamlined approach in the regulatory rate, rule, and form submission process,
while maintaining state-specific statutory requirements.
Identify important milestones in the history timeline of insurance regulation.1700-
1800 - ANSWER 1752 the Philadelphia Contributionship for the Insurance of
Houses from Loss by Fire became first mutual insurance company. It wasformed
with the help of Ben Franklin and incorporated in 1768
1800 Governments established initial mechanisms for regulation in the early 1800s
1851 First insurance commissioner elected in new hampshire
1869 Paul v. Virginia Corp.s are not citizens, issuing policy no a transaction of
commerce, effectively removing insurance beyond.Congress's legislative reach
1871 First meeting of the NAIC - created by state insurance regulators to coordinate
regulation of multistate insurers - unifirm financial reporting by insurance companies
Identify important milestones in the history timeline of insurance regulation.1900 -
ANSWER 1900s Price regulation began in the early 1900s across state lines
1752 - ANSWER 1st American insurer organized
1800 - ANSWER Governments establish early mechanism for regulation
1851 - ANSWER New Hampshire has first insurance commissioner
1871 - ANSWER First meeting NAIC
1900s - ANSWER Price regulation began
1944 - ANSWER U.S. v. South-Eastern Underwriters Association - overturned Paul,
ruled insurance is interstate commerce, subject to Sherman and Clayton acts
