Which act ensures homeowners and personal auto insurance is available and affordable to all citizens?

• A. Essential Insurance Act
• B. Eligibility Points
• C. Cease and Desist Order
• D. Controlled Business

Answer: (A)

The idea being tested is how state regulation can ensure that essential coverages—like homeowners and personal auto insurance—are available to all residents at an affordable price. An Essential Insurance Act would be the kind of law designed to promote that accessibility and affordability, establishing the framework for offering basic coverages to everyone and, often, guiding or constraining rates to keep them reasonable while still protecting consumers.

Why this fits best: such an act targets the basic purpose of keeping essential insurance within reach for the general public, rather than focusing on enforcement tools or eligibility criteria for programs. It’s about making sure people can actually obtain the protections they need without being priced out or denied coverage due to risk factors.

Why the other options don’t fit: Eligibility Points are a scoring or qualification mechanism for benefits or programs, not a policy guaranteeing broad access to standard homeowners or personal auto insurance. A Cease and Desist Order is a regulatory action used to stop illegal or unethical practices, not to ensure that insurance is available and affordable to everyone. Controlled Business refers to improper self-dealing where a licensee may control the policies they write or broker, which is a regulatory concern rather than a mechanism to widen access or control costs for the public.