- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 14. Analysis of Financial Institutions
- Subject 4. Analyzing an Insurance Company
CFA Practice Question
Which statement is correct regarding property and casualty insurance companies?
B. The event being covered is often unknown and unpredictable.
C. Their claims are more predictable than those of L&H insurers'.
A. The length of their duty to perform is usually short.
B. The event being covered is often unknown and unpredictable.
C. Their claims are more predictable than those of L&H insurers'.
Correct Answer: A
The event is often known with certainty, e.g. fire or weather events. Their claims are more variable.
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