CHAPTER 2 APPENDIX TRUEFALSE 1 Non life insurance companies have somewhat unpredictable cash outflows and are therefore faced with different investment constraints than life insurance companies ANS T PTS 1 2 Many endowments are tax exempt ANS T PTS 1 3 Cash flows for nonlife insurance companies, such as property and casualty, are similar to cash flows of life insurance companies ANS F PTS 1 4 Banks must compete for funds (savings deposits, CDs, etc ) in order to make loans and other types of i.