Life and Health Insurance - FIN-3660

FIN 3660

Please be sure to include a citation and a copy of any reference source you use. Cut and paste the citations to the end of this assignment.

1. Banks and insurance companies have only been in direct competition in recent years. Discuss the two most well-known laws regarding banks selling insurance.

2. A. Who or what entity is responsible for regulating insurance and what law defines this responsibility?

B. Identify the two primary reasons for insurance regulation. What reason is the most important? Explain.

3. What is the NAIC and how does it involve the regulation of insurers? Be specific in your answers and include all relevant info regarding the structure and function of this organization.

4. In most countries, insurance companies and most other businesses are organized as corporations. Please discuss one important difference between a corporation and other forms of business organization.

5. The statements below relate to financial institutions and one statement is FALSE. Select the answer choice containing the FALSE statement and explain why that statement is incorrect.

(1) Insurance companies cannot be classified as financial institutions because they do not function in the economy as financial intermediaries.

(2) Financial institutions serve as financial intermediaries by channeling funds from groups that act as suppliers of funds to groups that act as users of funds.

(3) Financial institutions help people, businesses, and governments save, borrow, invest, and otherwise manage money.

(4) A financial institution is a business that owns primarily financial assets, such as stocks and bonds, rather than fixed assets, such as equipment and raw materials.