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Determine which company you should do business with and explain why. Company A Company B Surplus Adequacy 14% 11% Rate of Surplus formation 3% 2.5%
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Determine which company you should do business with and explain why.
Company A Company B
Surplus Adequacy 14% 11%
Rate of Surplus formation 3% 2.5%
Investment in junk bonds 7% 7.8%
Mortgages in default 1.6% 1.97%
Investment in common stock 4% 5.5%
Return on Equity 10% 9.75%
Yield on Investments 2.6% 2.2%
Liquidity 8% 7.5%
Lapse Rate 2.5% 3.9%
Mortality/Morbidity 1.9% 2.7%
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