What utilize company-provided financial data to review and approve rate filings and to gather industry statistics?

Question

Options

• ABoards and bureaus
• BBoards and risks
• CBoards and investments
• DActuaries and bureaus

• A
  85% (29)
• B
  3% (1)
• C
  3% (1)
• D
  9% (3)

Explanation

Boards and bureaus (A) are the entities in the insurance industry that utilize company-provided financial data to review and approve rate filings and to collect industry-wide statistics - boards set policy and approve rates, while bureaus (like rating bureaus) aggregate data from multiple insurers to establish industry benchmarks.

Option B ("Boards and risks") is incorrect because "risks" refers to exposures or hazards, not an organizational entity involved in data review or rate approval. Option C ("Boards and investments") is wrong for the same structural reason - investments are financial instruments, not regulatory or statistical bodies. Option D ("Actuaries and bureaus") is a tempting distractor because actuaries do work with financial data, but actuaries are professionals who analyze data rather than entities that formally review and approve rate filings; bureaus alone don't complete the pairing described.

Memory tip: Think "B&B" - Boards approve, Bureaus collect. Just like a B&B (bed and breakfast) has two distinct but complementary roles under one roof, boards and bureaus each handle a distinct function in insurance regulation.

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