Which statement is not true about life insurance companies?
A) They have relatively predictable inflows and outflows.
B) Their liabilities are long-term in nature.
C) They invest heavily in short-term highly marketable securities.
D) They sell contracts that offer financial protection against premature death.
E) All of the above.

Question

Quizplus · Accepted Answer

Life insurance companies typically invest in long-term securities to match their long-term liabilities. While they do have predictable inflows and outflows and sell contracts that offer financial protection against premature death, they do not invest heavily in short-term highly marketable securities.

Which Statement Is Not True About Life Insurance Companies