Catastrophe Futures Contracts

question 87

Multiple Choice

Catastrophe futures contracts

• A)are designed to protect life insurance companies from the effects of natural disasters in which large numbers of lives are lost.
• B)are designed to protect property-casualty insurers against the extreme losses that can occur in hurricanes.
• C)are designed to hedge insurance companies from liability law suits.
• D)provide a payoff when the actual loss ratio is less than the expected loss ratio.

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Definitions:

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