4
QuizMultiple Choice

Financial Operations of Insurance

Question 4 • (AG Q4) Financial Literacy: 25-26 (JRush)

An insurance company’s solvency can be most efficiently assessed by checking its _____.

Answer
A
self-rating
B
financial statements
C
complaints at state regulator’s office
D
ratings from independent agencies

Explanation

Independent rating agencies assess an insurance company’s ability to meet its financial obligations, including paying claims. Their ratings provide a direct, efficient indication of the company’s solvency. Self-ratings are not independent, while financial statements and complaint records require more interpretation.

AI-written and checked against the verified answer.

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