- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 16. Analysis of Financial Institutions
- Subject 4. Analyzing an Insurance Company
CFA Practice Question
Compared to P & C insurers, which statement is correct regarding life and health insurance companies?
A. The length of their duty to perform is usually shorter.
B. Liquidity is typically not a concern.
C. Their claims are more predictable.
Explanation: Their policies are usually long term. Their claims are more predictable. Liquidity historically was less important but is still a concern.
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