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The NAIC Requires Life Insurers to Keep Two Different Types

Question 32

Multiple Choice

The NAIC requires life insurers to keep two different types of reserve accounts. These reserve accounts are designed to protect insureds from poor investment results the insurer may suffer. What are these two reserves called?


A) Mandatory securities valuation reserve and supplementary securities valuation reserve
B) Mandatory securities valuation reserve and asset valuation reserve
C) Mandatory securities valuation reserve and interest maintenance reserve
D) Interest maintenance reserve and asset valuation reserve

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