Discuss the difference between life insurance and non-life insurance companies with regard to the certainty of...

Discuss the difference between life insurance and non-life insurance companies with regard to the certainty of timing and amount of cash outflows (i.e., which company’s cash outflow is more predictable in terms of amount and timing?). Why is life insurance company more suitable to invest its capital in equity portfolio than non-life insurance company who is more suitable to invest its capital in fixed income securities?

Solutions

Expert Solution

Here is solution of your question. If you have any query please comment in comment Box and will definitely resolve your query Thank you

jeff jeffy answered 4 months ago

Next > < Previous

Related Solutions

1. Explain the difference between term and cash value life insurance. Discuss the difference between the...

1. Explain the difference between term and cash value life insurance. Discuss the difference between the following cash value life insurance types: ordinary, variable, and universal.

What is the difference between Whole Life Insurance and Term life Insurance policies?

Indicate the similarities and differences between property and casualty (PC) insurance companies and life insurance companies?

The two types of insurance companies are life insurance companies and & insurance companies....

The two types of insurance companies are life insurance companies and ____ & ____ insurance companies. (no answer choices available)

1. What is the difference between term life insurance and whole life insurance? 2. What are...

1. What is the difference between term life insurance and whole life insurance? 2. What are non-forfeiture provisions? (Google: life insurance settlement options. http://www.investopedia.com/exam-guide/cfp/life-insurance/cfp6.asp (Links to an external site.)Links to an external site. ) 3. Name three settlement options. 4. What is the difference between a primary and a secondary beneficiary? 5. Name two ways to determine how much life insurance is appropriate for Petunia?

Haley would like to know the difference between variable life insurance and universal life insurance. Which...

Haley would like to know the difference between variable life insurance and universal life insurance. Which of the following statements most accurately describes the difference? a. Variable life insurance uses subcontracts that are invested to generate a guaranteed rate of return. b. Universal life insurance uses a fixed mortality charge, and variable life insurance does not. c. Variable life insurance has a death bene t that varies, and universal life insurance provides only a fixed death benefit. d. Universal life...

Assets of Life Insurance Companies What are the main assets of life insurance companies? Identify the...

Assets of Life Insurance Companies What are the main assets of life insurance companies? Identify the main categories. What is the main use of funds by life insurance companies?

Life insurance companies usually charge a higher premium to smokers than non-smokers. Given this, what is...

Life insurance companies usually charge a higher premium to smokers than non-smokers. Given this, what is the potential for adverse selection and moral hazard in the process of new applicants? How can the company reduce or eliminate those problems? Most credit cards charge a relatively high rate of interest, yet low-risk borrowers carry them. The adverse selection concept says that low-risk borrowers should be discouraged from credit cards. Why is this not the case? Your friend maintains a very high...

Life insurance companies tend to be larger in asset size than casualty insurance companies because of...

Life insurance companies tend to be larger in asset size than casualty insurance companies because of _____ Their special income tax exclusions The selective underwriting processes for policy issuances The long-term, accumulative nature of whole life policies The characteristics of their term policies

Address one of the following questions. 1. Discuss how the assumptions of certainty, non-negativity, proportionality, and...

Address one of the following questions. 1. Discuss how the assumptions of certainty, non-negativity, proportionality, and divisibility are necessary to solve linear programming models? 2. What are the strengths and weaknesses of network models? Then, please respond to a student who answered a different question than the one you addressed. Your answer should be 3-4 paragraphs (150-200 words). Responses to other students should be one paragraph (about 50-75 words). Repeating the question does not count as a paragraph.

Subjects