Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed

This type of rating law is called
A) prior approval.
B) file-and-use.
C) use-and-file.
D) flex rating.


Answer: C

Business

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Valor Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Valor?

a. Common Stock increases $150,000. b. Common Stock increases $5,000? Additional Paid­in Capital—Common increases $145,000. c. Common Stock increases $5,000; Retained Earnings increases $145,000. d. Common Stock increases $5,000; Gain on Sale of Common Stock increases $145,000.

Business

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account, ________.

A) total assets and total liabilities increase by the same amount B) total assets of the company remain constant C) total equity and total assets increase by the same amount D) total liabilities increase and total equity decreases by the same amount

Business

Distinguish between shelf positioning and shelf facings.

What will be an ideal response?

Business

Definedminus?benefit pension plans are generally? ________ and they lack? ________.

A. contributory; divesting B. vested; portability C. noncontributory; portability D. contributory; portability E. noncontributory; divesting

Business