According to the text several insurance companies have run into deep trouble and some have failed due to:

Question

Quizplus · Accepted Answer

All of the options listed (heavy purchases of junk bonds, poorly performing real estate investments, and high fixed-cost sources of funds) are factors that can contribute to the financial instability or failure of insurance companies. These investments and financial strategies can lead to significant losses or liquidity issues, especially in adverse market conditions.

According to the Text Several Insurance Companies Have Run into Deep