2018 - Fall 3b)
3b) Following the passage of the McCarran-Ferguson Act, the NAIC approved model bills related to rate regulation. Describe 2 underlying purposes of the bills.
In the study notes under MF, the last bullet, the 6th bullet lists NAIC proposed model law to:
Limit Federal regulation, allow states to regulate rates, promote equitable rates, and prohibit anti-competitive behavior
I would've assumed that the answers would be #1 allow states to regulate rates and #2 promote equitable rates would be acceptable answer under the notes but the answers under the quiz review and examiner's report is:
1) permitted cooperative rate-setting to ensure fair prices (provided competition wasn't hindered)
2) ensured rates were not inadequate, excessive, unfairly discriminatory
How do we reconcile these 2 differences? Further, bullet #2 is the answer in the study notes under "prompted the creation of the NAIC Producer Model act regarding the Gramm-Leach-Bliley Act.
Comments
This is the answer key, in this case, going off-script from the paper. It combines the paper's statements with some related information from other exams.
Crucially, they are given as sample answers. Graders may also have accepted answers as listed in the study note.