SOFE Exam AFE Topic 2 Question 69 Discussion

Actual exam question for SOFE's AFE exam

Question #: 69
Topic #: 2

[All AFE Questions]

A mismatch in the timing of asset maturities relative to policy benefits requiring either reinvestment or disinvestment by the insurer at uncertain future interest rates is known as:

AReliable Mismatch Risk

BMaturity Mismatch Risk

CChange Mismatch Risk

DRisk Variance

Show Suggested Answer

Suggested Answer: D

by Barbra at Feb 09, 2024, 12:56 AM

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Bambi

4 days ago

I'm not sure, but I think it could also be A) Reliable Mismatch Risk because it's important for insurers to manage this risk effectively.

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Alaine

5 days ago

Definitely B) Maturity Mismatch Risk. This is a classic textbook definition of the risk arising from the timing difference between asset maturities and policy benefit payments.

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Lynette

11 days ago

I agree with Lashandra. It makes sense because it's about the timing of asset maturities.

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Lashandra

12 days ago

I think the answer is B) Maturity Mismatch Risk.

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