National Association of Insurance Commissioners stated that, has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.

Question

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Securities lending involves the temporary transfer of securities to a borrower, with the agreement that the borrower will provide collateral. The National Association of Insurance Commissioners (NAIC) states that securities lending has no effect on the valuation of securities for statutory accounting purposes, as long as the collateral provided is at least equal to the required amount.

National Association of Insurance Commissioners Stated That, Has No Effect