Author Question: Huge Insurance Company is a property insurer that is interested in protecting itself against ... (Read 81 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
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
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
 

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

For a complete list of videos, visit our video library