Policy Reserves Are the Primary Asset of the Typical Life

question 13

True/False

Policy reserves are the primary asset of the typical life insurer.

---

Definitions:

Stockholders' Equity

The equity capital that is contributed by shareholders plus the retained earnings of the company. It represents the residual value of assets after liabilities have been settled.

Creditors' Risk

The risk that debtors will default on their obligations, resulting in financial loss for creditors.

Verifiable

The characteristic of information that can be checked for accuracy and reliability.

Financial Reports

Formal records of the financial activities and position of a business, individual, or other entity.