Regarding Exam Question (2019.Fall #3)

"It's interesting that this was asked in part (b) of the following exam question: (how to test effectiveness of an insurance regulatory framework)
E (2019.Fall #3)
But the answer provided in the examiner's report was completely different from what was stated in the source text."

I noticed that it looks like the examiner's report took the solution from the NAIC Solvency reading, Section 1, paragraph 15

"15. Regulatory success in the U.S. is a judgment call that involves consideration of many factors: the
frequency and extent the regulatory regime or framework aided insurers by identifying and
rectifying potential problems before those problems could cause harm to policyholders and
claimants; the rate of insolvencies and the payments to policyholders in those insolvencies; effective
and efficient rehabilitation actions; market health, viability and competition; and a perceived and
actual cost-benefit analysis of the regulatory regime. "