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Which general insurance companies hold more liquid asset

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Reference no: EM132619103

Problem 1: General insurance companies hold more liquid assets than life insurance companies because:

Option 1 they have a legal requirement to do so.

Option 2 events such as fires and earthquakes are difficult to predict.

Option 3 more people try to get payouts from them by fraud.

Option 4 there are more items covered under a general insurance policy so there are more payouts to the insured.

Reference no: EM132619103

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