The correct answer is      (B.) KBW Insurance Index (KIX)

The KBW Insurance Index (KIX) covers 75% of the market capitalization of U.S. insurance stocks across the industry. It includes household names such as AFLAC (NYSE: AFL), Allstate (NYSE: ALL) and Chubb (NYSE: CB). The index peaked at just over 150 in May 2008. When it hit its low of around 42 this past March, it had fallen more than -70% -- far worse than the roughly -50% decline in the S&P 500. Since then, however, the S&P has recovered about +40% of its value off its lows, but insurance stocks have rebounded more than +90%!

Though this may seem like the time to get back in the ring, you can't just throw all caution to the winds in picking insurance stocks. Many former blue chip firms are still struggling and may underperform long-term, even during a stock market recovery. As Nigel Dally, a top-rated insurance analyst for Morgan Stanley (NYSE: MS) has said, "The industry used to be very stable, very predictable. Now it's about who can weather the storm."

However, even though the best of the breed saw large investment income declines last year as interest rates and the stock market plummeted, the strongest insurers remained profitable and are now poised for continued gains as the economy starts to stabilize. That's why these stalwarts are part of StreetAuthority editor Carla Pasternak's short list this month in her High-Yield Investing newsletter. Carla's high-yield picks range from preferred stock to exchange-traded debt, and to boot, all are investment-grade, offer secure income, and enjoy a positive return on equity (ROE). In fact, the average ROE for the group is 8.63%--far stronger than the barely profitable 0.86% returns of the insurance industry as measured by the KBW Insurance Index!

Getting back in the game can be daunting, but StreetAuthority has you covered. The securities she's identified not only carry a bargain price tag, they provide stable, above-average income with yields of up to 11%. To learn the names of Carla's picks, and to learn more about High-Yield Investing, please visit this link.