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SOFE Exam AFE Topic 2 Question 69 Discussion

Actual exam question for SOFE's AFE exam
Question #: 69
Topic #: 2
[All AFE Questions]

A mismatch in the timing of asset maturities relative to policy benefits requiring either reinvestment or disinvestment by the insurer at uncertain future interest rates is known as:

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Suggested Answer: D

by Barbra at Feb 09, 2024, 12:56 AM

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Verona
2 months ago
Maturity Mismatch Risk, eh? Sounds like a bad case of asset-liability indigestion. Better take some Tums for that one!
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Stephanie
1 months ago
Yeah, it's like trying to juggle different balls at once.
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Ruthann
1 months ago
I think it's Maturity Mismatch Risk, right?
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Ma
2 months ago
I know, it can really throw off your balance sheet.
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Justine
2 months ago
D) Risk Variance? Hmm, I think the exam writer might have been feeling a bit mischievous with that one. Nice try, but B) Maturity Mismatch Risk is the winner here.
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Rikki
2 months ago
C) Change Mismatch Risk
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Graham
2 months ago
B) Maturity Mismatch Risk
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Leota
2 months ago
A) Reliable Mismatch Risk
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Meaghan
3 months ago
A) Reliable Mismatch Risk? Really? That's not even a thing. The answer has to be B) Maturity Mismatch Risk. Come on, folks, let's not make this harder than it needs to be.
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Gregoria
2 months ago
Yeah, I agree. Let's go with B) Maturity Mismatch Risk.
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Erinn
2 months ago
I think you're right, B) Maturity Mismatch Risk makes more sense.
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Lemuel
3 months ago
I was leaning towards C) Change Mismatch Risk, but after reading the options carefully, B) Maturity Mismatch Risk is clearly the correct answer. Gotta love these tricky insurance terminology questions!
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Bambi
3 months ago
I'm not sure, but I think it could also be A) Reliable Mismatch Risk because it's important for insurers to manage this risk effectively.
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Alaine
3 months ago
Definitely B) Maturity Mismatch Risk. This is a classic textbook definition of the risk arising from the timing difference between asset maturities and policy benefit payments.
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Tegan
2 months ago
Yes, it can lead to financial instability if not handled properly.
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Jade
3 months ago
Reinvestment or disinvestment decisions can have a big impact.
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Audria
3 months ago
It's important for insurers to manage this risk effectively.
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Leoma
3 months ago
I agree, it's definitely B) Maturity Mismatch Risk.
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Lynette
4 months ago
I agree with Lashandra. It makes sense because it's about the timing of asset maturities.
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Lashandra
4 months ago
I think the answer is B) Maturity Mismatch Risk.
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