Principal objectives of state statutes are:
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A. B. C. D.A
The principal objectives of state statutes can vary depending on the specific statute in question, but in the context of insurance entities, they typically aim to regulate and protect policyholders and ensure the solvency of insurance companies operating within the state.
Option A, "restrict investments of insurance entities," is not a common objective of state statutes regarding insurance. Instead, state statutes often provide guidelines for permitted investments and require insurance companies to maintain certain levels of liquidity to ensure they can pay claims.
Option B, "prescribe methods of admitted asset recovery," is an important objective of state statutes in regulating insurance entities. Admitted assets are those that an insurance company can count towards its assets when calculating its financial position. State statutes often prescribe methods for determining the value of these assets and for ensuring that they are recoverable in the event of the company's insolvency.
Option C, "acquisition of risk-based capitals," is not a typical objective of state statutes. However, state insurance regulators may require insurance companies to maintain certain levels of capital to ensure they have the financial strength to pay claims. This capital requirement may be based on the risk profile of the company's operations, but it is not typically referred to as "risk-based capital."
Option D, "Both B & C," is not a correct answer. While prescribed methods of admitted asset recovery (option B) is an important objective of state statutes, acquisition of risk-based capital (option C) is not a typical objective of state statutes.
Therefore, the correct answer to the question is option B, "prescribe methods of admitted asset recovery."