9
AssignmentMultiple Choice

Asset-backed Securities, Loan Sales, and Derivatives

Question 9 • (AG Q4) Financial Literacy: 25-26 (JRush)

Which three requirements are the responsibility of an insurance company? (Select all that apply.)

Answer
A
Investigate opportunities for investor fraud.
B
Collect premiums from the insured.
C
Manage their reserves for claims.
D
Pay claims to the insured.

Explanation

An insurance company collects premiums from people who buy its policies, sets aside and manages reserves to cover expected claims, and pays valid claims under the policy. Investigating opportunities for investor fraud is not a routine responsibility of an insurance company; that is generally handled by regulators or law-enforcement agencies.

AI-written and checked against the verified answer.

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