The Risk-Based Capital Requirements for Life Insurers Are Based on a Formula

question 34

Multiple Choice

The risk-based capital requirements for life insurers are based on a formula that considers four types of risk.One risk reflects a range of uncertainties that life insurers face including such things as bad management decisions and guaranty fund assessments.This risk is called

• A)asset risk.
• B)insurance risk.
• C)interest rate risk.
• D)business risk.

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Definitions:

Presenteeism

is the act of attending work while sick, which can lead to decreased productivity and potentially spreading illness to colleagues.

Job Demands

Refers to the aspects of a job that require continuous effort and energy, potentially leading to job strain.

Work-Family Conflict

The tension and conflict arising when the demands of work interfere with family life or vice versa.

Job Insecurity

The fear or uncertainty regarding the stability of one's employment.