State laws generally require insurance companies to maintain certain debt and solvency ratios. Insurance companies that fail to maintain the minimum levels are subject to severe penalties, most often affecting the company's continuation as a going concern. How may regulatory requirements such as these impact management decisions?

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The Answer of State laws generally require insurance companies to maintain certain debt and solvency ratios. Insurance companies that fail to maintain the minimum levels are subject to severe penalties, most often affecting the company's continuation as a going concern. How may regulatory requirements such as these impact management decisions?

State Laws Generally Require Insurance Companies to Maintain Certain Debt