$12$ of $15$

The following statements are about typical assets and liabilities that appear on an insurance company's balance sheet. Three statements are true, and one statement is false. Select the answer choice containing the FALSE statement.

An insurance company's largest liability is its policy reserves.

A balance sheet shows how the values of an insurance company's assets and liabilities changed over a specific period, such as one month or one year.

Insurance companies do not usually invest primarily in bonds.

The most important asset category for insurance companies is securities$,$ such as stocks and bonds.