Discussion Questions

Chapter 6

Discuss why the insurance industry is subject to more regulation than many industries. How is the regulation of the insurance industry different from other financial industries, and discuss whether this difference is good or not.

Chapter 7

Take two of the five functions of insurers and describe and discuss the functions. Rate the five functions in terms of (1) importance, and separately, (2) difficulty. Explain your reasoning.

Chapter8

The primary emphasis in statutory accounting is supposedly on financial conservatism. However, some statutory techniques violate this principle. Discuss three ways in which statutory accounting is ultraconservative and two areas where the principle of conservatism is violated.