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American Bankers Association CTFA Exam - Topic 2 Question 34 Discussion

Investments in equities by a life insurance company may not exceed the total of
D) All of the above
A) 70 percent of the insurance company's regulatory capital
B) 15 percent of the liabilities in respect of non-participating policies
C) 25 percent of the liabilities in respect of participating policies

American Bankers Association CTFA Exam - Topic 2 Question 34 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 34
Topic #: 2
[All CTFA Questions]

Investments in equities by a life insurance company may not exceed the total of

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Suggested Answer: D

by Markus at Aug 02, 2022, 05:47 AM

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Jaclyn
8 months ago
Don't forget, it's all of the above!
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Kimbery
8 months ago
Wait, all of these limits apply at once? That seems a bit much.
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Tamar
9 months ago
Definitely agree with the 25% for participating policies!
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Orville
9 months ago
I thought it was only 15% for non-participating policies?
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Martha
9 months ago
A life insurance company can invest up to 70% of its regulatory capital.
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Cecilia
9 months ago
I vaguely remember that participating policies had a different limit, maybe 25%, but I can't remember the specifics for the others.
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Donte
9 months ago
I feel like the answer might be D, all of the above, but I can't recall the exact percentages for each type of policy.
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Jeff
9 months ago
I think I practiced a question similar to this, and it mentioned non-participating policies being capped at 15%.
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Linn
9 months ago
I remember something about investment limits for insurance companies, but I'm not sure if it's 70% of regulatory capital or something else.
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Timothy
9 months ago
The question mentions the "Calculate Withholding" program, so I'm guessing the pay status needs to be something related to withholding, like "W" for withholding.
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Mozelle
10 months ago
I'm a bit unsure about this one. The options seem pretty specific, so I'll need to think through each one to figure out which basic need life insurance can't fulfill.
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