Question

The National Association of Insurance Commissioners (NAIC) administers an "early warning system" to help ensure insurance company solvency. This system uses data provided in the annual statement to identify companies that may pose a solvency risk. This early warning system is called

a) RAPID
b) SWOT
c) FAST
d) SIR

Answer 1

The NAIC's early warning system to help ensure insurance company solvency is known as the Financial Analysis Solvency Tools (FAST).

Step-by-step explanation:

The National Association of Insurance Commissioners (NAIC) administers an early warning system to safeguard insurance company solvency, which is known as the Financial Analysis Solvency Tools (FAST). This system uses data provided in the annual statements to identify insurance companies at risk of solvency issues. While a program like RAPID or SWOT might also be related to analysis and management, it is the FAST system that the NAIC employs for the early detection of solvency concerns in insurance firms.