Chapter 12Nonbank Finance112.1 Insurance Companies12.1.1 Life Insurance Companies-The first life insurance company was established in 1759 and there are currently about 1700 companies. -Regulated by states, not federal government.-Hold illiquid long-term assets-Poor returns caused insurance demand -Became managers of pension funds212.1.2 Property & Casualty Insurance Companies-Regulated by states-Hold more liquid assets-Insure against losses from almost any type of event. If a possible loss is t
