Covered interest arbitrage can be taken advantage of when premiums in forward rates are not

exactly equal to the interest rate differential between two countries.

Indicate whether the statement is true or false

TRUE

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Which account refers to the reserve set-aside that contains the portion of a premium that has been paid before insurance coverage has been provided.

A. Unearned premiums. B. Prepaid premiums. C. Premium reserves. D. Policy reserves. E. Outstanding premiums.

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The holdover clause might also be called a protection or extension clause.

a. true b. false

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