Asset-backed Securities, Loan Sales, and Derivatives

Question 1

Insurance companies are regulated and monitored by the federal government.

Revolt · Accepted Answer

False

Question 2

Insurance Company A has been declared insolvent. That means their customers are _____.

Revolt · Accepted Answer

guaranteed payment by their state authorities

Question 3

When buying an annuity contract with a company, it is the most important to _____.

Revolt · Accepted Answer

understand the company’s solvency

Question 4

Match each piece of legislation in Column A with its description in Column B.

Question 5

Insurance companies do underwriting mainly to _____.

Revolt · Accepted Answer

assess risk

Question 6

Insurance Company A is monitored for solvency by state authorities. They will most likely next be monitored and checked _____.

Revolt · Accepted Answer

in the next quarter

Question 7

Reinsurance companies are important mainly because they _____.

Revolt · Accepted Answer

provide insurance companies with a way to stop losses

Question 8

Insurance Company B has been declared insolvent after a period of rehabilitation that was not able to save them. The next step for this company is that it will go out of business.

Revolt · Accepted Answer

True

Question 9

Which three requirements are the responsibility of an insurance company? (Select all that apply.)

Revolt · Accepted Answer

Collect premiums from the insured.; Manage their reserves for claims.; Pay claims to the insured.

Question 10

Characteristics of an immediate annuity include that it _____. (Select all that apply.)

Revolt · Accepted Answer

is chosen by an investor for an income guarantee; is chosen by investors for security

Asset-backed Securities, Loan Sales, and Derivatives Answers

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