Property-Casualty Insurers Tend to Have a Higher Level of Liquidity

question 46

True/False

Property-casualty insurers tend to have a higher level of liquidity risk than life insurers.

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Definitions:

Dishonored

Dishonored describes a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Presentment

The act of formally presenting a document, such as a check or draft, for acceptance or payment.

Dishonored

Refers to a financial instrument (check, promissory note) that is not accepted or paid upon presentation.