RE: Question 33

Jason A. Martin ( (no email) )
Wed, 4 Nov 1998 07:34:18 -0600

IASA Ch 10 page 9, the last sentence on the page states, "... insurers =
are
required to value all BB or lower rated bonds at the lower of amortized =
cost
or market." So, I believe the answer is A.

-----Original Message-----
From: Patrick Beaudoin [SMTP:abf308@agora.ulaval.ca]
Sent: Tuesday, November 03, 1998 6:31 PM
To: Study Group Part 7
Subject: Question 33

> 33. D (p. 10-11, 10-5, 10-6)
=09
=A0
For the third statement, page 10-6 doesn't mention that these bonds
must be carried at market value (unless I am blind).=A0 It just says =
they are
junk bonds.=A0=20
=A0
However, page 3-4 says that bonds of NAIC class 1 and 2 only are
carried at amortized value, thus classes 3-6 are carried at mkt =
value.=A0=20
=A0
=A0