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Which of the following service do life insurance companies offer?

Which of the following service do life insurance companies offer?
A) Provide term insurance (i.e. pure insurance)
B) Sell policies with a savings feature
C) Administer pension funds
D) All of the above

Auto insurance policy is labeled as the type ____ liability of FIs.
A) I

A term life insurance policy
A) Provides insurance benefits only
B) Helps people during their retirement
C) Offers savings benefits
D) Requires higher premiums

Insurance companies employ deductibles
A) To eliminate small claims
B) To adjust premiums
C) To reduce moral hazard
D) To do all of the above

Insurance policy benefits are classified on the FI’s balance sheet as
A) Assets because policy benefits are valuable
B) Liabilities because the insurance company may have to pay out the benefits
C) Assets because policy benefits are fully covered by premium payments
D) Liabilities because customers may fall behind on their premium payments

The insurance management tool of charging young male drivers higher auto insurance premiums than young females is an example of
A) An attempt to minimize moral hazard
B) Coinsurance
C) Risk-based premium
D) Restrictive provision

Among the following financial institutions, which one holds the least liquid assets?
A) Property and casualty (P&C) insurance companies
B) Life insurance companies
C) Commercial banks
D) Money market mutual funds

HSBC Finance is an example of
A) Captive finance company
B) Business credit institution
C) Floor plan finance company
D) Personal credit institution

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