Question

What is the primary function of investment activity in insurance companies?

a.

Covering administrative expenses

b.

Generating revenue from premiums

c.

Compensating underwriting losses

d.

Funding marketing initiatives

Answer: (c).Compensating underwriting losses Explanation:Investment activity in insurance companies primarily serves to compensate for underwriting losses incurred in the competitive market.

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Q. What is the primary function of investment activity in insurance companies?

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