20-121 In the NAIC model for life insurance companies,this risk measures the liquidity of liabilities for given rate changes.

Question

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Interest rate risk measures the potential impact of changes in interest rates on the value of liabilities and the liquidity of those liabilities. As rates change, the value of liabilities can increase or decrease, potentially impacting the ability of the company to meet its obligations. This is a key risk for life insurance companies who hold long-term liabilities such as annuities and life insurance policies.

20-121 in the NAIC Model for Life Insurance Companies,this Risk