Which of the following intermediaries offers contingent claims?
A)casualty insurance companies
B)pension plans
C)life insurance companies
D)All of the above offer contingent claims.

Question

Quizplus · Accepted Answer

Contingent claims are financial securities whose value is dependent on the value of an underlying asset or event, like an insurance policy or an insured individual's death. All of the given intermediaries offer contingent claims: casualty insurance companies offer contingent claims in the form of insurance policies for events like accidents, pension plans offer contingent claims in the form of future benefits dependent on specific events like retirement, and life insurance companies offer contingent claims in the form of death benefits.

Which of the Following Intermediaries Offers Contingent Claims