Define insurance company that takes on the greater risks, Financial Management

Assignment Help:

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company?

The risks protected in opposition to by property and casualty companies are very much less predictable as compared to are the risks insured by life insurance companies.  Hurricanes, fires, floods, and trial judgments are all very difficult to predict than the number of sixty-year-old females who will die this year among a large number in this risk class.  The meaning of this is that property and casualty insurance companies should keep more liquid assets than do life insurance companies.


Related Discussions:- Define insurance company that takes on the greater risks

Net income that the company distributes to shareholders, The dividend is th...

The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?

Calculate the optimum amount of funds to transfer, Q. Calculate the optimum...

Q. Calculate the optimum amount of funds to transfer? The Baumol model is derived from the EOQ model and is able to be applied in situations where there is a constant demand fo

Calculate the required return - maintenance & other expense , An asset need...

An asset needed by the ABC Corp. can be purchased for $100,000.  Maintenance and other ownership expenses will total $20,000 each year for the asset's expected 10-year life. On the

Misconceptions of securitization, There are some misconceptions about...

There are some misconceptions about securitization: Poor quality originators end up in securitizing their assets. A bank's best mortgage

Stock market, functions of stock market in usa

functions of stock market in usa

Documenting the accounting system, Documenting the accounting system Th...

Documenting the accounting system There are 3 methods generally used to document the clients system. Narrative notes: Written description of the system Advantages:- C

Evaluate alternative hedging strategies, Peak Inc. needs to order Canadian ...

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

Discount rate determinants, Discount Rate Determinants The discount rat...

Discount Rate Determinants The discount rate is the firm weighted average cost of capital. It represents the opportunity cost of investing creditors and shareholders funds in o

Convertible bonds, Basics of Convertible Bonds The provision of convers...

Basics of Convertible Bonds The provision of conversion in a corporate bond entitles the bondholder the right to convert the bond into a predetermined number of shares of commo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd