Exam DISC-IA Practice Question 8
Study guide: Exam DISC-IA
A state's insurance regulation requires every insurer domiciled in the state to admit a type of asset that the NAIC Accounting Practices and Procedures Manual would nonadmit. How is this practice classified, and what must a domestic insurer that follows it disclose?
- A) A permitted practice; no disclosure, because the state requires it
- B) A permitted practice; its effect on net income and statutory surplus
- C) A prescribed practice; no disclosure, because it applies to all domestic insurers
- D) A prescribed practice; its effect on net income and statutory surplus
Answer this question and see the worked solution