Which Statement Is Not True About Life Insurance Companies

question 29

Multiple Choice

Which statement is not true about life insurance companies?

• A) they have relatively predictable inflows and outflows.
• B) their liabilities are long-term in nature.
• C) they invest heavily in short-term highly marketable securities.
• D) they sell contracts that offer financial protection against premature death and against living too long.

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Definitions:

Rubber Boots

Waterproof boots generally made from rubber or a water-resistant material to keep feet dry.

Operational Definition

A clear, detailed description of how an experimental variable is measured or manipulated within research.

Hypothesis

A testable prediction about the conditions under which a particular behavior or mental process may occur.

Negative Correlation

An association between two variables characterized by the increase of one variable leading to the decrease of the other, and the opposite is also true.