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Insurance companies perform functions that are similar to those of investment companies. *
True or False
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- Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investmentwhat are the pros and cons of being insured by a mutual insurance company vs a stock insurance company?what underwriting risk. what are two risks faced by insurance companies?
- N1 How life insurance contracts are different from other financial services or products?1. (a) “Insurance is a method of reducing risk”. Justify the statement. Briefly discuss the various method of eliminating business risk. (b) What do you mean by assignment in the context of insurance? Does assignment applicable in various main branches of insurance? (c) Compare and contrast between Perils VS Hazards Facultative reinsurance VS Treaty reinsurancewhat is one example of a risk management strategy used by insurance companies to mitigate underwriting risks?
- 3. What is the role of Insurance company? the differences between Primary Market and Secondary Market. 4. WriteHow insurance companies works?Insurance policies form the basis of an insurance company’s ________________. a. Financial securities b. Financial liabilities c. Financial assets d. Net policy reserves