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Question
State Farm and other P&C insurers came into conflict with policyholders over claims filed as a result of Hurricane Katrina that resulted in lawsuits. The conflict resulted from
A. insurer's refusal to pay until reinsurance funds were collected.
B. policyholder's fraudulent claims.
C. insurers' insistence that the Katrina storm surge resulted in flood damage which was not covered.
D. insurers overcharged for hurricane insurance.
Answer
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Related questions
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What is the total amount of net fee revenue generated from the mortgages over the year?
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A. I only
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A macro hedge is a hedge of a particular asset or liability exposure to a change in a macroeconomic variable.
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The bank's one-year repricing gap is (Million $)A. $425.B. $285.C. $74.D. $140.E. $66.
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Due to convexity problems, banks are actually better off using the simpler repricing model to manage interest rate risk rather than the duration model.
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The cash flow from the interest a bank receives on a long-term loan that is normally reinvested is called the runoff from the loan.
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If a bank has a negative repricing gap, falling interest rates increase profitability.
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c) Loan commitments to total assets
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Explain how liquidity risk can lead to insolvency risk.
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In the absence of deposit insurance, a deposit is a _______________ to the bank's assets.A. pro rata claimB. first come/first serve claimC. full pay or no pay claimD. both A and BE. both B and C
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Q:
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B. Class B
C. Class C
D. Class Z
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