Question

What was the only requirement for a life insurance company until the 1970s?

a.

Marketing efforts to attract customers

b.

High policyholder satisfaction ratings

c.

Value of assets not less than liabilities

d.

Implementation of advanced technology

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Value of assets not less than liabilities Explanation:Until the 1970s, the only requirement for a life insurance company was that the value of its assets should not be less than the value of liabilities.

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Q. What was the only requirement for a life insurance company until the 1970s?
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