A Company's Investments Are Admitted Assets Properly Valued Which Support

question 168

Multiple Choice

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

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