Which of the Following Is NOT a Differentiation Between Deposit

question 59

Multiple Choice

Which of the following is NOT a differentiation between deposit insurance and state guaranty funds for the insurance industry?

• A)The required contributions provided by surviving insurers differs widely across states.
• B)The annual pro rata contributions often are legally capped for each insurer as a percent of premium income.
• C)A permanent guaranty fund does not exist for the insurance industry.
• D)Contributions by surviving firms into the guaranty fund occur before an insurance company has failed.

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Definitions:

Lateral Bud

A bud that develops on the side of a stem, which can grow into a branch or leaf.

Aggregate Fruit

A type of fruit that develops from multiple ovaries of a single flower, each segment maturing into a smaller fruit segment.

Blackberry

A fruit produced by many species in the Rubus genus within the Rosaceae family, known for its dark, purple-black color and composed of a cluster of drupelets.

Pea

A small, spherical seed or the seed-pod of the plant Pisum sativum, commonly used as a vegetable in cooking.