A life insurance company that collects premiums and invests them in bonds and mortgages is:
A life insurance company that collects premiums and invests them in bonds and mortgages is:
Answer
A non-depository financial intermediary
Options - A. A non-depository financial intermediary - B. A depository institution, since it holds funds - C. Not an intermediary, since it sells insurance - D. An investment dealer, since it buys securities Why - A. Correct — it pools funds and holds claims on borrowers, so it intermediates; the claim it issues is a policy, not a deposit. - B. Holding funds is not the test; issuing a DEPOSIT is. A policy is not repayable on demand and is not deposit-insured. - C. Selling policies is how it raises the funds; investing them across many borrowers is intermediation in full. - D. Buying securities makes it an investor, not a dealer. A dealer underwrites and trades for clients.
Bank Act s. 14; OSFI, financial institutions supervised (osfi-bsif.gc.ca), observed 2026-09-17 — facts only