2) Which of the following is true of life insurance companies? A) Typically the type of...

2) Which of the following is true of life insurance companies?

A) Typically the type of assets that life insurance companies hold are corporate bonds, commercial mortgages, and corporate stock.

B) The two typical forms of life insurance polices that are held can be classified as whole and variable life policies.

C) The major risk that life insurance companies face is that payouts to policy holders are very hard to predict.

D) Life insurance companies have suffered from wide spread failures.

Expert Solution

Ans) the correct option is a) Typically the type of assets that life insurance companies hold are corporate bonds, commercial mortgages, and corporate stock.

They primarily hold long-term assets that are not particularly liquid.

Rahul Sunny answered 3 years ago

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