True or False: Property and casualty insurance companies maintain more liquid asset portfolios than life insurance companies because they may experience unpredictable events that result in a massive amount of claims True False Andrew purchases an old office building and wants to obtain commercial property insurance. The building is at an increased risk of fire damage because the electrical work is outdated. In a weak economy, the insurance company charges him a lower premium than usual and agrees to take the risk. This pricing strategy is called Healthcare Insurance Jacques develops cancer and needs to schedule an appointment with an oncologist. Which type of healthcare plan would allow him to select any doctor he chooses? Other Types of Insurance Determine the type of insurance that is used to cover each risk in the following list. Type of Coverage Risk Losses that exceed the coverage of an existing insurance policy Damage to a firm's building, furniture, and other assets Financial loss due to the death of the Chief Financial Officer of a firm Loan payments owed to a bank if the borrower dies Damages from defective products that cause injury or harm Bond Insurance True or False: Bond insurance is a promise by the insurer to guarantee payments to the bond insurer. True False Mortgage Insurance Which of the following are true regarding mortgage Insurance? Check all that apply. A credit default swap allows a borrower to offset his risk of default with another lender. To avoid purchasing mortgage Insurance, mortgage lenders typically require borrowers to make a down payment greater than 20 percent of the cost of the home. Mortgage Insurance protects a tender from losses in case the borrower defaults on the loan