Insurance Company Selection

Question 1

What was the GLB Act of 1999?

Answer 1

Sought to modernize the US financial services market/insurance marketplace to give it a competitive edge over European counterparts.

Question 2

What did the Merritt Committee Investigation reveal?

Answer 2

unethical and undesirable characteristics in fire insurers

Question 3

What did the Armstrong Investigation reveal?

Answer 3

unethical business acquisition methods, unjustifiable home-office expenses, unethical political influence, and other problems in life insurance industry

Question 4

How do states regulate the insurance market?

Answer 4

By ensuring that problems of insolvency do not hamper the interest of the insured.

Question 5

How do states enforce the regulation?

Answer 5

Making certain stipulations and closely monitoring the insurers to ensure that these are not violated.

Question 6

Through which legislation did the U.S. Supreme Court reverse its historical position rendered in Paul v. Virginia on interstate regulation of insurance?

Answer 6

In 1944, in the South-Eastern Underwriters Association (SEUA) case, the U.S. Supreme Court reversed its historical position rendered in Paul v. Virginia. It now concluded that insurance was indeed interstate commerce.