Fin 341 Liebenberg Exam 2 UPDATED ACTUAL
Questions And Correct Answers
Terms in this set (205)
What does the financial services - Commercial banks
industry consist of? - Savings and loan institutions
- Credit unions
- Life and health insurers
- Property and casualty insurers
- Mutual Funds
- Securities brokers and dealers
- Private and state pension funds
- Government-related financial institutions
T/F The U.S. has the largest insurance TRUE
market in the world
Life and health insurers sell life and health insurance products, annuities,
mutual funds, pension plans, and related financial
products
Property and casualty insurers sell property and casualty insurance and related
lines
, Size of U.S. insurance market in 2022: (1) 737
- Life and health: (1) (2) 2,554
- Property and casualty: (2)
Why has there been a reduction in consolidations (mergers)
the size of life and health insurers?
_ ____ (More/Less) concentration in More
Mississippi insurance market than the
national average
The four types of organizational Stock insurers
forms used to classify insurers Mutual insurers
Lloyd's of London
Captives
Note: in the U.S., the top 3 dominate the market
Stock insurer corporation owned by stockholders
- stockholders elect BoD and BoD selects mgmt
Objective of stock insurer earn profit for stockholders by increasing the value
of stock and paying dividends (maximize
shareholder wealth)
T/F Stockholders of stock insurers FALSE: they bear all losses; they have residual
only bear some losses claim, so if the company goes under, they may get
nothing
Benefits of being a stock insurer - More efficient (monetary-wise) because
institutional investors do better at monitoring
- They can raise equity capital through selling stock
for capital gains alongside debt capital
Questions And Correct Answers
Terms in this set (205)
What does the financial services - Commercial banks
industry consist of? - Savings and loan institutions
- Credit unions
- Life and health insurers
- Property and casualty insurers
- Mutual Funds
- Securities brokers and dealers
- Private and state pension funds
- Government-related financial institutions
T/F The U.S. has the largest insurance TRUE
market in the world
Life and health insurers sell life and health insurance products, annuities,
mutual funds, pension plans, and related financial
products
Property and casualty insurers sell property and casualty insurance and related
lines
, Size of U.S. insurance market in 2022: (1) 737
- Life and health: (1) (2) 2,554
- Property and casualty: (2)
Why has there been a reduction in consolidations (mergers)
the size of life and health insurers?
_ ____ (More/Less) concentration in More
Mississippi insurance market than the
national average
The four types of organizational Stock insurers
forms used to classify insurers Mutual insurers
Lloyd's of London
Captives
Note: in the U.S., the top 3 dominate the market
Stock insurer corporation owned by stockholders
- stockholders elect BoD and BoD selects mgmt
Objective of stock insurer earn profit for stockholders by increasing the value
of stock and paying dividends (maximize
shareholder wealth)
T/F Stockholders of stock insurers FALSE: they bear all losses; they have residual
only bear some losses claim, so if the company goes under, they may get
nothing
Benefits of being a stock insurer - More efficient (monetary-wise) because
institutional investors do better at monitoring
- They can raise equity capital through selling stock
for capital gains alongside debt capital
