Read the box, "Problem Investments and the Credit Crisis", in this chapter and respond to the following questions:

a$.$ Use the assets and liabilities of life insurers in their balance sheets to explain why losses in mortgage$-$backed securities can hurt the net worth of insurers.

b$.$ Insurance brokers have been very busy since the troubles of AIG became public knowledge. Why are these brokers busier? What is the connection between AIG$$s troubles and the work of these brokers?

c$.$ What is the cause of AIG$$s problems? Explain in the context of assets and liabilities.