The correct answer is: C. Both I and II
Policy decisions in an insurance organization are decisions that affect the overall direction of the organization. They include decisions about the types of insurance to offer, the rates to charge, and the level of customer service to provide.
Statement I is false because policy decisions do not only relate to the issue of specific insurance policies. They also relate to the overall direction of the organization.
Statement II is also false because policy decisions do not only relate to the different kinds of plans of insurance to be offered to the public. They also relate to the overall direction of the organization.
In conclusion, both statements I and II are false.