Fund life & health insurance Explain carefully why this statement is false Since the level of...

Fund life & health insurance

Explain carefully why this statement is false

Since the level of insurer’s capital reflects its financial stability, companies with the highest absolute value of capital is always preferred.

Solutions

Expert Solution

Level of insurer capital will be reflecting the overall exposure of insurance in its own balance sheet and company which have a highest absolute capital is not always preferred because companies which are having the highest insurer capital have a greater chance of being picked because they will providing with the best security as there is a higher exposure of insurance in their own business.

Since, the highest absolute value of capital is not always preferred, the given statement is FALSE

jeff jeffy answered 1 year ago

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