All of the Following Statements About Captive Insurers Are True

question 29

Multiple Choice

All of the following statements about captive insurers are true EXCEPT

• A)They may act as a profit center by insuring parties other than the parent company.
• B)They provide a way to obtain types of insurance that may be unavailable from commercial insurers.
• C)They increase the volatility of the parent company's earnings.
• D)They make it easier for a firm to have access to reinsurance.

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Definitions:

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services without the right to compensation.

Raising Money

The act of collecting or acquiring funds for a specific purpose, such as for a business venture, charitable cause, or project.

War Bonds

Securities issued by a government to finance military operations during times of war, encouraging citizens to lend money with the promise of repayment with interest.

Union Generals

Military leaders who commanded the Union armies during the American Civil War, fighting against the Confederate states.