All of the Following Statements About Life Insurance Company Investments

question 15

Multiple Choice

All of the following statements about life insurance company investments are true EXCEPT

• A)Funds for these investments are derived primarily from premium income,investment earnings,and maturing investments that must be reinvested.
• B)Income from these investments reduces the cost of insurance.
• C)A primary objective in making these investments is safety of principal.
• D)The majority of these investments are short-term investments.