An asset held by life insurers that tends to follow the business cycle and represents a volatile claim on the industry's resources is:

Question

Quizplus · Accepted Answer

Loans to policyholders are a volatile claim on the industry's resources because they tend to follow the business cycle. In a recession, policyholders may be more likely to default on their loans, which can lead to losses for the insurer.

An Asset Held by Life Insurers That Tends to Follow