Relative to life insurance companies,property and casualty insurance companies hold

Question

Quizplus · Accepted Answer

Property and casualty insurance companies tend to hold more liquid assets such as cash and short-term investments, as they need to have readily available funds to pay out claims. Life insurance companies, on the other hand, generally invest in longer-term assets such as bonds and mortgages to match the longer-term nature of their liabilities. Therefore, choice A is the best option.

Relative to Life Insurance Companies,property and Casualty Insurance Companies Hold