The two objectives of insurance policy form regulation are to ensure that policies are clear and readable and to

• A. minimize the insurer's reporting burden.
• B. maximize premium revenue.
• C. ensure policies are legally enforceable in court.
• D. detect and address any policy provisions that are unfair.

Answer: (D)

Regulators regulate policy forms to protect consumers by ensuring the contract language is clear and understandable, and then they focus on fairness in the actual terms. The second objective is to detect and address any policy provisions that are unfair, such as terms that unduly limit coverage, are deceptive, or create hidden or imbalanced obligations. This keeps contracts balanced and transparent, preventing insurers from including unfair clauses that could mislead or disadvantage insureds. The other options aren’t the main aim: regulation isn’t primarily about reducing the insurer’s reporting burden, increasing premiums, or simply ensuring enforceability in court—the emphasis is on clear language and fair terms.