Which of the following statements about the investments of property and liability insurers is (are)true?
I.Income from investments is important in offsetting any unfavorable underwriting experience.
II.Because premium income is continually being received,the investment objective of liquidity is of little importance.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Income from investments is important for property and liability insurers to offset any unfavorable underwriting experience. However, liquidity is still an important investment objective for insurers to ensure they have the necessary funds to pay claims and other obligations. Therefore, statement II is not true.

Which of the Following Statements About the Investments of Property