All of the following statements about life insurance company investments are true EXCEPT income from these investments reduces the cost of insurance. funds for these investments are derived primarily from premium income, investment earnings, and maturing investments that must be reinvested. a primary objective in making these investments is safety of principal. the majority of these investments are short-term investments.
All of the following statements about life insurance company investments are true EXCEPT income from these investments reduces the cost of insurance. funds for these investments are derived primarily from premium income, investment earnings, and maturing investments that must be reinvested. a primary objective in making these investments is safety of principal. the majority of these investments are short-term investments.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:All of the following statements about life insurance company investments are true
EXCEPT
income from these investments reduces the cost of insurance.
funds for these investments are derived primarily from premium income,
investment earnings, and maturing investments that must be reinvested.
a primary objective in making these investments is safety of principal.
the majority of these investments are short-term investments.
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