Explanation:
B is true.
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Question-21.5.2. Given their obligations (insurance is a legal contract), insurance companies have internal and external (i.e., regulatory) capital requirements. In regard to regulations, capital, and capital requirements at insurance companies, which of the following statements is TRUE?
A
In the European Union (EU), Basel IV regulates the capital requirements for international (i.e., cross-border) insurance companies
B
The leverage ratio, as defined by assets-to-equity, is likely to be higher for a life insurance company than a property-casualty company (ceteris paribus)
C
On the insurance company’s balance sheet, the unearned premiums are assets that are matched by liabilities such as investments in corporate bonds
D
In the United States, regulation of insurance companies is primarily conducted at the Federal level and the Federal (U.S.) government maintains a permanent fund to protect the policyholders of chartered insurance companies