Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE Exam AFE Topic 3 Question 76 Discussion

Actual exam question for SOFE's AFE exam
Question #: 76
Topic #: 3
[All AFE Questions]

_allow investments to be made, up to a certain percent of invested or total admitted assets, in assets that do not otherwise meet regulatory requirements. If their domiciliary jurisdiction regulations have a this, a life insurer with a business purpose for doing so can make a limited amount of mortgage loans that do not meet regulatory requirements without a reduction in surplus. However, some jurisdictions do exercise some extraterritorial jurisdiction related to it.

Show Suggested Answer Hide Answer
Suggested Answer: A

by Art at May 19, 2024, 01:31 AM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Edison
14 days ago
The basket clause, huh? Sounds like a great way to get around the rules and make some risky investments. As long as it's under the limit, I guess the regulators won't mind. Where can I get one of those?
upvoted 0 times
...
Jamie
17 days ago
Well, if the question is asking about a provision that allows insurers to invest in non-compliant assets, then the basket clause has to be the answer. Seems straightforward enough.
upvoted 0 times
...
Teri
23 days ago
Haha, 'basket clause'? Sounds like something you'd find at the grocery store, not in an insurance regulation. But I guess that's the right answer here.
upvoted 0 times
...
Bobbye
1 months ago
I'm not sure about the basket clause, but I'm pretty confident it's not any of the other options. Definitely not a loan application or underwriting agreement.
upvoted 0 times
Dortha
3 days ago
C) Underwriting agreement
upvoted 0 times
...
Alaine
19 days ago
B) Basket clause
upvoted 0 times
...
Elvera
20 days ago
A) Loan application
upvoted 0 times
...
...
Ezekiel
1 months ago
The basket clause seems to be the correct answer here. It allows insurers to invest in non-compliant assets up to a certain limit, which is what the question is describing.
upvoted 0 times
...
Orville
2 months ago
I'm not sure about this. Can someone explain why a basket clause is the correct answer?
upvoted 0 times
...
Genevive
2 months ago
I agree with Nguyet. A basket clause allows investments in assets that do not meet regulatory requirements.
upvoted 0 times
...
Nguyet
2 months ago
I think the answer is B) Basket clause.
upvoted 0 times
...

Save Cancel