Answer:
The statement which is not true about life insurance companies is:
B. They invest heavily in short-term highly marketable securities.
Explanation:
- The option A is true about the life insurance companies as they sell contracts that offer financial protection against premature death and against living too long as this the main purpose of a life insurance policy.
- These companies don't invest heavily in short-term highly marketable securities so the option B is not true about these companies.
- The option C is true about the insurance companies as they have prediction about their inflows and outflows.
- The option D is also correct as their liabilities are long-term in nature as the insurance policy is a long term policy.
