« previous next »

Author Question: Huge Insurance Company is a property insurer that is interested in protecting itself against ... (Read 80 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jul 11, 2018
Huge Insurance Company is a property insurer that is interested in protecting itself against cumulative losses that exceed 200 million during the year. This protection can best be obtained using a(n)
 
  A) quota-share reinsurance treaty.
  B) surplus-share reinsurance treaty.
  C) excess-of-loss reinsurance treaty.
  D) reinsurance pool.

Question 2

All of the following statements about life insurance company investments are true EXCEPT
 
  A) Funds for these investments are derived primarily from premium income, investment earnings, and maturing investments that must be reinvested.
  B) Income from these investments reduces the cost of insurance.
  C) A primary objective in making these investments is safety of principal.
  D) The majority of these investments are short-term investments.


zenzy

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage, During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage,
The Stillwater Mining Company The Stillwater Mining Company
The grand opening of the huge Miraflores lock on the Panama Canal in October, 1914. The locks were b The grand opening of the huge Miraflores lock on the Panama Canal in October, 1914. The locks were b
This headache remedy was “guaranteed” by the drug company; 1906. This headache remedy was “guaranteed” by the drug company; 1906.
Pharmaceutical Company Representatives Pharmaceutical Company Representatives
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Pressure Flow Model Animation

For a complete list of videos, visit our video library