Exam 6: Financial Services: Insurance Companies

An insurance company collected $31.0 million in premiums and disbursed $28 million in losses.Loss adjustment expenses amounted to $5.0 million.The firm is profitable

As of 2015,assets of property-casualty insurers totaled approximately ________,which was ______ of the assets of the life insurance industry.

Underwriting risk faced by property-casualty insurance companies may result from unexpected

The primary function of insurance companies is to

By regulation,the payments on an annuity contract must stop when the annuity holder dies.

As of 2015,the primary regulator of both the life and property-casualty insurance industry is/are the

The property casualty insurance industry is concentrated where a few large firms dominate the market.

Annuities are popular retirement savings products because investment returns on contributions are tax-deferred.

Variable universal life insurance policies

As with the life insurance industry,property-casualty firms tend to invest the majority of their assets and long-term investments.

Property-casualty insurers tend to have a higher level of liquidity risk than life insurers.

Term life insurance includes a savings element as well as the pure insurance element.

Credit default swaps are a product offered by insurance companies.

The process of life insurance uses risk pooling to transfer income-related uncertainties from a group of individuals to an insured individual.

Which of the following is an advantage of converting from a mutual insurance company to a stockholder-controlled company?

Commercial banks sold over 25% of fixed-return annuities,an insurance product,in 2015.

You start an annuity with $1million and expect to receive 12 equal payments beginning at the end of the first year.The guaranteed annual interest rate is 6 percent.The annual payments that you expect to collect are

Insurance companies have resisted the investment in technology that banks and other financial service firms have pursued.

As of 2015,chartering of life insurance companies can be done only at the state level.

Separate accounts business only appears as a liability on a life insurer's balance sheet.