Question : Wymer and others tried to justify their schemes by saying that there was an economic : 2139033
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
21) Wymer and others tried to justify their schemes by saying that there was an economic downturn and it was necessary to pursue risky investments and hide information from regulators so they could try to recover. This might have been more believable had it not been for:
A) other firms' ability to weather the tough financial times.
B) lack of fraud in investments.
C) insolvency in a time of great economic prosperity.
D) amassing of personal fortunes.
22) The biggest losers in the Institutional Treasury Management case were:
C) the public.
23) When it comes to the insurance industry, the public is in most danger from:
A) customers who make false claims.
B) states who let insurers raise premiums.
C) unscrupulous insurance companies.
D) the state's failure to pay claims out of its guaranty fund.
24) An example of premium diversion would be:
A) using premiums collected to pay claims.
B) failure to pay legitimate claims.
C) using premiums to pay excessive salaries to executives.
D) using premiums to pay operating costs.
25) Unscrupulous insurance companies can also cheat the public by claiming to have assets they do not have, or assets that are worth more than they really are. The reason companies do this is:
A) to meet capitalization requirements.
B) to obscure money received from illegal activities.
C) to conceal diversion of premiums.
D) to lure investors.
26) The Multiple Employer Welfare Arrangement was created by Congress to:
A) enable employers to provide group medical insurance.
B) enable small business owners to avoid the requirement to provide insurance.
C) enable employers to provide life insurance.
D) enable employers to meet welfare payments requirements for health care.
27) Reinsurance is a legitimate business practice in the insurance industry. It becomes a problem when:
A) insurance companies do not spread possible losses adequately.
B) reinsurers are undercapitalized.
C) insurance companies fail to adequately diversify their investments.
D) insurance companies use reinsurers that are located outside the United States.
28) The term "offshore" means:
A) a company located in a United States territory but not in one of the 50 states.
B) a company located in a fictitious country.
C) a location in a place other than the United States.
D) a company based outside the continental United States.
29) Regulator reaction to insurance scams can be very slow. In the case of Martin Bramson and his fake malpractice insurance policies for doctors, an insider had tipped regulators for ________ before action was taken.
A) 10 months
B) 5 years
C) 10 years
D) 15 years
30) Alan Teale and his far-flung group of companies took advantage of the public in all of the following ways except:
A) securing claims with treasury notes secured by the Sovereign Cherokee Nation Tejas.
B) liability policies for high school athletes.
C) avoiding the reinsurance scam.
D) disability plans for professional athletes.