Catastrophe Bonds Are Made Available to Institutional Investors in the Capital

question 30

Multiple Choice

Catastrophe bonds are made available to institutional investors in the capital markets through an entity that is specially created for that purpose.This is entity is called a

• A)risk retention group.
• B)fraternal insurance company.
• C)captive insurance company.
• D)special purpose reinsurance vehicle.

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Definitions:

Dimethylamine

A simple organic compound that consists of nitrogen attached to two methyl groups.

Mechanism

A detailed description of the step-by-step process by which a chemical reaction occurs, including the breaking and formation of bonds.

Carboxylic Acid

Organic acids characterized by the presence of at least one carboxyl group (-COOH), widely found in nature.

Derivative

In chemistry, a compound that is derived from a similar compound by a chemical reaction.