The type of credit insurance that landed AIG into trouble in 2008 is known as   Question 8 options:   a)  insurance rate swaps.   b)  credit default swaps.   c)  default insurance.   d)  monoline insurance.

Q: When you choose to buy insurance, are you speculating? When you choose not to buy insurance, are you…

A: In the field of economics, making investments or financial decisions based on unpredictable future…

Q: True/False (Explain): A savings account with annuity due will accumulate more interest amount than a…

A: In finance, an annuity is a series of equal payments made at regular intervals, such as monthly,…

Q: explain the difference between moral hazard and adverse selection using the example of health…

A: Market Failure refers to economics that can occur due to moral hazard or adverse selection. In any…

Q: Option Premium Will Change With Changes in:   A. The Underlying Asset AND The creation of a new…

A: Options improve several market approaches, which is why investors enjoy them. Buying a call option…

Q: 42. Your insured decides to install a recreation room in the basement of the house. Which one (1)…

A: A Homeowners Comprehensive Policy, also known as an HO3 policy is a type of homeowners insurance…

Q: The difference between the actuarily fair price for insurance and the price a risk-averse individual…

A: To Find: Difference between the actual fair price for insurance and, the price a risk- averse…

Q: Which of the following is a method used by a government agency to help reduce imperfect information…

A: Imperfect information or asymmetric information refers to the situation when the buyer or the seller…

Q: Which of the following statements is correct about a business income coverage form? 1. it must be…

A: Business income coverage form is a type of an insurance policy that covers loss of income from…

Q: 30. The problem of moral hazard arises because a. life is full of all sorts of risks. b. after…

A: In a market, a moral hazard refers to the situation of asymmetric information that may lead to…

Q: Mortgage lenders require the borrowers to make a 20% down payment. Otherwise, private mortgage…

A: Asymmetric information refers to the problem when one party has more information about the good or…

Q: Pls help ASAP

A: Liability Loss from Uninsured Parked Trailer:  When a liability loss occurs due to an uninsured…

Q: As time to expiration of an option is increased, with all else being equal,    A. The price of the…

A: Options are derivatives contracts that allow the holder the right but not the duty to purchase or…

Q: An insurance company suffers from adverse selection if Select one: a. Safe customers are less likely…

A: The correct answer is: 1. safe customers are less likely to insure than risky customers.This is the…

Q: Which of the following concepts can be used to characterise the relationship between an insurer and…

A: Insurance transform aggregated capital into useful investment. Insurance additionally empowers…

Q: Which of he following sections of an insurance contract limits coverage? A.Waiver of Premium…

A: An insurance contract is an agreement between two parties, one of whom is known as the insurer and…

Q: PLS HELP ASAP

A: Candidate: SHARMA HITI:Company A, with above-average sales and earnings increases and lower…

Q: Describe some healthcare situations in which an agent has taken advantage of a principal. Then…

A: Principal agent problem occurs when a different individual makes decisions on behalf of someone.  In…

Q: The difference between retrospective versus prospective reimbursement is that:   a. Prospective…

A: Retrospective Payment Framework A framework wherein repayment is made to the supplier dependent on a…

Q: Insurance companies are regulated under federal insurance laws. True False

A: This statement is false.

Q: Spreadsheet Use the Excel template VLC to find the average value of a loyal custormer (VLC) in a…

A: Avg value of Loyal Customer = 75

Q: General insurance companies hold:     a smaller number of short-term assets than life insurance…

A: In an economy, many financial institutions provide different types of insurance to the public…