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NACVA CVA Exam - Topic 4 Question 25 Discussion

In general, the use of life insurance can fulfill all of the following basic needs EXCEPT:
C) Minimum interest rate based on U.S. Treasury rates
A) Liquidation of the stock of a disabled stockholder, either by the corporation or by other stockholder
B) Payment of estate taxes
D) Provision for continuity of the business after loss of a key person

NACVA CVA Exam - Topic 4 Question 25 Discussion

Actual exam question for NACVA's CVA exam
Question #: 25
Topic #: 4
[All CVA Questions]

In general, the use of life insurance can fulfill all of the following basic needs EXCEPT:

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Suggested Answer: C

by Jutta at May 07, 2022, 08:59 AM

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Lashandra
10 months ago
Definitely not for liquidation of stock, that's for sure.
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Selma
11 months ago
I thought life insurance could cover estate taxes, but maybe not?
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Raul
11 months ago
Wait, are we sure about that? Seems a bit off.
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Vilma
11 months ago
Totally agree, C is the odd one out here!
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Agustin
11 months ago
Life insurance can't guarantee minimum interest rates.
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Tarra
11 months ago
I'm a bit confused about A and D. I know life insurance can help with key person loss, but I'm not sure if it covers stockholder liquidation.
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Samira
11 months ago
I feel like we practiced a question similar to this, and it was about business continuity. So, I think D is definitely a valid use of life insurance.
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Kaitlyn
11 months ago
I think option C stands out because life insurance typically doesn't deal with interest rates like U.S. Treasury rates.
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Britt
11 months ago
I remember discussing how life insurance can help with estate taxes and business continuity, but I'm not sure about the minimum interest rate part.
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Noemi
11 months ago
I'm a little confused here. The question seems to be asking about the most important questions to ask the customer, but some of the options don't seem directly related to the stated concerns. I'd probably go with the network connectivity and off-peak hours questions.
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Annalee
12 months ago
This seems like a straightforward risk response question. Management is clearly asking Harry to implement a mitigation strategy by finding a new supplier who can fulfill the window order on time.
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Fidelia
12 months ago
This looks like a classic optimization problem. I'll need to carefully analyze the graph and think through the key factors to determine the most efficient level of output.
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