Which of the following statements is not true? 1. Statutory accounting has emphasized the balance sheet in its concern for protecting the policyholders by focusing on the financial solvency of the...

Which of the following statements is not true?

1. Statutory accounting has emphasized the balance sheet in its concern for protecting the policyholders by focusing on the financial solvency of the insurance corporation.

2. All 50 states have insurance departments that require annual statements of insurance companies. These annual reports are filed with the state insurance departments in accordance with SAP.

3. After the annual reports are filed with the individual state insurance departments, a testing process is conducted by the NAIC. If a company’s ratio is outside the prescribed limit, the NAIC brings that to the attention of the company.

4. A.M. Best Company publishes Best’s Insurance Reports, which are published separately for life-health companies and property-casualty companies. The financial data, including the ratios, are based on the data submitted to the state insurance departments and are thus based on SAP.

5. Many stock insurance companies must register with the Securities and Exchange Commission and file the required forms, such as the annual Form 10-K. Reports filed with the SEC must conform with GAAP.