Exam DISC-IA Practice Question 243
Study guide: Exam DISC-IA
An insurer's risk-based capital ratio is 340% of Authorized Control Level, above every action level. Its quarterly filings show premium up 60% in a year, after it began writing commercial auto through a managing general agent, and its liabilities are rising faster than its liquid assets. What can its domiciliary regulator do?
- A) Escalate the analysis and order a limited-scope examination, and act if it finds hazardous financial condition
- B) Nothing until the RBC ratio falls below an action level, because RBC is the only legal trigger
- C) Ask the NAIC to examine the insurer, since states cannot examine between scheduled exams
- D) Place the insurer in liquidation, because rapid growth through an MGA is unlawful
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