Which of the Following Statements Is True About Fraternal Insurers

question 21

Multiple Choice

Which of the following statements is true about fraternal insurers?

• A)They are legally organized as stock insurers.
• B)They specialize in writing life and health insurance.
• C)They are taxed more heavily than other types of insurers because of discriminatory marketing practices.
• D)They account for the majority of life insurance in force in the United States.

Identify the role of government and policies in modifying behaviors through economic incentives.

Understand how people respond to changes in prices and the availability of resources.

Appreciate the importance of choices and trade-offs in economic theory.

Recognize the significance of individual choice in the allocation of scarce resources.

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Definitions:

Financial Intermediaries

Institutions that facilitate the channeling of funds from savers to borrowers by intermediating between them.

Credit Needs

The requirement for borrowing funds to finance purchases, investments, or to bridge gaps in cash flow.

Security Needs

The requirement to protect a nation, organization, or individual from various threats, including cyber attacks, terrorism, and theft.

Required Reserve Ratio

The ratio of reserves to deposits that banks are obligated by regulation to hold.