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Which of the following is NOT the Asset/ Liability Management (ALM) activity?

A.

Regulation of Insurer Financial Disclosure

B.

Regulation of Insurer Investment Activity

C.

Regulation of Insurer Reserve Adequacy

D.

Regulation of Insurer Asset Adequacy

There is pending litigation concerning the acquisition of a subsidiary and it is probable such litigation will result in its divestiture is an example of:

A.

Transaction control

B.

Subsidiary control

C.

Significance control

D.

Temporary control

The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company’s general account business?

A.

Business

B.

Temporal

C.

Principal

D.

Segregated

What represent the ownership interests in the net assets of the subsidiary held by persons outside the controlling entities’ structure?

A.

External control

B.

Minority interests

C.

Permanent stockholder

D.

None of the above

A Company’s investments are admitted assets properly valued which support the reserves and liabilities, including required capital and surplus. Many jurisdictions permit companies to make some investments that do not meet all of the strict regulatory requirements. These additional investments are often referred to as basket assets. Which of the following is/are true for Basket assets?

A.

They have been made out of a company’s free surplus

B.

Mortgage loans are first liens on the property backing them. Second or third-lien mortgages typically qualify as “basket” loans

C.

A particular entity can obtain this benefit

D.

They record investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced