How do state guarantee funds for life insurance companies compare with deposit insurance for depository institutions?...
How do state guarantee funds for life insurance companies compare with deposit insurance for depository institutions?
No plagiarism please.150-200 words
Homework Answers
State guarantee funds for life insurance companies have some similarities with deposit insurance for banks and other institutes. However, there are some differences as well.
The guarantee funds for life insurance are state requirements that the insurance companies need to follow if they want to operate in a given state. This means if an insurance company wants to do business in all 50 states in USA, they need to sign up and insure their funds through the program of the state. This is regulated by NAIC.
The deposit insurance on the other hand is handled by FDIC or NCUA. These federal agencies are targeted towards protecting the deposits in the banks made by consumers in their total amount or partial amount.
The similarity between them is that these two insurance methods are targeted towards protecting consumers in case their insurance company or bank becomes insolvent. In such case, these insurances are triggered and some of the asset is covered.
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How do state guarantee funds for life insurance companies
compare with deposit insurance for depository institutions?...
Please provide at least 3 similarities and 3 differences between insurance companies and depository institutions both in...
Please provide at least 3 similarities and 3 differences between insurance companies and depository institutions both in terms of their function as well as the make-up of their balance sheet.
intermediaries, including depository insthuions such as commercial banks and savings insttutions, insurance companies, mutual funds, and...
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How does the primary function of an insurance company compare with that of a depository Institution?
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intermediaries, including depository insthuions such as commercial banks and savings insttutions, insurance companies, mutual funds, and pension funds, transfer funds from uitimate lenders (savers) tor uhimate borrowers Firandial ietermediaries specialize in tecking problems of problem by carefuly reviewing the crede worthiness of loan applicants, and they deal with the protiem by monitoring bomowers aher they receive loans Many financial intemedaes also take advantage of cost reductions anaing from the centralized management of funds pooled from the ieformaon They address the...
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