in 2009, the us state of hawaii enacted rate - stability regulations (rsrs) containing requirements for…

in 2009, the us state of hawaii enacted rate - stability regulations (rsrs) containing requirements for companies to raise premiums after a periodic loss - prevention plan to maintain insurance policies (after the policies effect). rsrs are effective at protecting existing policyholders from price volatility, but as aizawa and ahn koo note that since dynamic premiums are not allowed, companies are unable to offer some insurers to scale back or retire claims selling new policies at the affected market. thus, reducing the competitive pressure that typically restrains premium prices for new policies. thus, hawaiis rsrs may ____. which choice most logically completes the text? a. benefit policyholders at the expense of new individuals seeking to acquire policies b. reduce premium price volatility once policies are in effect but increase risks for policyholders c. increase the number of premium prices for new policies despite leading to fewer insurers offering such policies in the affected market d. prove advantageous for insurers than they are for either current or new policyholders

in 2009, the us state of hawaii enacted rate - stability regulations (rsrs) containing requirements for companies to raise premiums after a periodic loss - prevention plan to maintain insurance policies (after the policies effect). rsrs are effective at protecting existing policyholders from price volatility, but as aizawa and ahn koo note that since dynamic premiums are not allowed, companies are unable to offer some insurers to scale back or retire claims selling new policies at the affected market. thus, reducing the competitive pressure that typically restrains premium prices for new policies. thus, hawaiis rsrs may ____. which choice most logically completes the text? a. benefit policyholders at the expense of new individuals seeking to acquire policies b. reduce premium price volatility once policies are in effect but increase risks for policyholders c. increase the number of premium prices for new policies despite leading to fewer insurers offering such policies in the affected market d. prove advantageous for insurers than they are for either current or new policyholders

Answer

Explanation:

Step1: Analyze the text

The text states that RSIS are effective at protecting existing policies from price volatility but can cause some insurers to scale back or retire some policies. Hawaiian RSIS may lead to fewer insurers offering such policies in the affected market.

Step2: Evaluate each option

  • Option A: There is no mention of benefiting policymakers at the expense of new - comers in the text.
  • Option B: There is no indication that RSIS will reduce premium price volatility once policies are in effect but increase risks for policyholders.
  • Option C: Since some insurers scale back or retire policies, it will lead to fewer insurers offering such policies in the affected market, which is consistent with this option.
  • Option D: There is no information suggesting that RSIS will make it more advantageous for insurers than they are for current or prospective policyholders.

Answer:

C. lead to fewer insurers offering such policies in the affected market