Final answer:
The correct answer is 3) Both I and II.
Step-by-step explanation:
The correct answer is 3) Both I and II. Both statements I and II are true regarding the licensing of insurance companies.
Statement I: Insurance companies are required to be licensed in order to operate in a specific jurisdiction. This licensing process typically involves meeting certain regulatory requirements, such as demonstrating solvency and financial responsibility.
Statement II: The licensing of insurance companies is overseen by regulatory bodies, such as state insurance departments. These regulatory bodies ensure that insurance companies comply with laws and regulations, protect policyholders' interests, and maintain fair and competitive insurance markets.