CAS Exam 6C Fall 2016, Question 23
Study guide: Exam 6C
Part a (0.75 points)
Identify three reasons why most property and casualty insurance companies obtain financial strength ratings from one or multiple rating agencies even though they have no debt and are not publicly traded.
Part b (1 point)
Briefly describe two advantages and two disadvantages for an insurance company to choose an interactive rating.
Part c (0.5 points)
Briefly describe two shortcomings of rating agencies.
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