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Bonds 210: Municipal Bond Insurance

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1.
Generally, municipal bond insurance must be continuously renewed over the life of the municipal bond.
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False. Generally, municipal bond insurance is good for the entire life of the bond; an exception can exist in the case of unit investment trusts.
2.
Municipal bonds are often assessed by underwriters before they are sold to the marketplace.
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True. They do this to learn of any risks in the bonds.
3.
Municipal bond insurance is paid directly by investors of municipal bonds.
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False. Municipal bond insurance is paid directly by issuers of municipal bonds.
4.
The largest issuer of municipal bond insurance is _______.
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Assured Guaranty. Assured Guaranty dominates the municipal bond insurance market at present.
5.
Insured municipal bonds provide investors with the security that their interest and principal will be paid.
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True. This is the appeal of insured municipal bonds.