Question 1

By 2015,life insurance companies were managing approximately 40% of all private pension plans.

Accepted Answer

A) True 
 B)False

Question 2

Economies of scope represent the principal advantage of group life over ordinary life policies for insurance companies.

Accepted Answer

A) True 
 B)False

Question 3

The surrender value of an insurance policy is

Accepted Answer

A) the expected payment commitment on existing policy contracts. 
B) a fund established and held separately from the company's other assets. 
C) the cash value paid to the policyholder if the policy is terminated before it matures. 
D) the same as the endowment payout. 
A) the expected payment commitment on existing policy contracts. 
B) a fund established and held separately from the company's other assets. 
C) the cash value paid to the policyholder if the policy is terminated before it matures. 
D) the same as the endowment payout.

Question 4

PC (property-casualty)insurers tend to offer products that combine features of property insurance and liability insurance into single policy packages.

Accepted Answer

A) True 
 B)False

By 2015,life insurance companies were managing approximately 40% of all private pension plans.

Economies of scope represent the principal advantage of group life over ordinary life policies for insurance companies.

The surrender value of an insurance policy is

PC (property-casualty)insurers tend to offer products that combine features of property insurance and liability insurance into single policy packages.

Why Are Financial Institutions Special

Financial Services: Depository Institutions

Financial Services: Finance Companies

Financial Services: Securities Firms and Investment Banks

Financial Services: Mutual Fund and Hedge Fund Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters

Exam 6: Financial Services: Insurance Companies

By 2015,life insurance companies were managing approximately 40% of all private pension plans.

Economies of scope represent the principal advantage of group life over ordinary life policies for insurance companies.

The surrender value of an insurance policy is

PC (property-casualty)insurers tend to offer products that combine features of property insurance and liability insurance into single policy packages.

Why Are Financial Institutions Special

Financial Services: Depository Institutions

Financial Services: Finance Companies

Financial Services: Securities Firms and Investment Banks

Financial Services: Mutual Fund and Hedge Fund Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters