The Function of Capital to Serve as a Source of Funds

question 120

True/False

The function of capital to serve as a source of funds is critical to regulators when setting risk-based deposit insurance premiums.

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Definitions:

Insurable Interest

The financial interest that a policyholder has in the person or property that is insured.

Life Insurance

An insurance contract that provides monetary compensation for losses suffered by another’s death.

Beneficiary

A third party receiving benefits from a contract made between two other parties. Also, the person named in an insurance policy to receive benefits paid by the insurer in event of a claim.

Fire Insurance Policy

A contract that provides coverage against losses or damages caused by fire to property.