CAS Exam 6C Fall 2014, Question 28
Study guide: Exam 6C
The following information is available from Page 40.07 Summary of Investments of a property and casualty insurance company's December 31, 2013 P&C-1:
| Fair Value: Held for Trading (01) | Fair Value: Available for Sale (03) | Fair Value: Hedges (05) | Fair Value: FV Option/ Investment Properties Fair Value (07) | Amortized Cost (09) | Balance Sheet (01+03+05+07+09) (12) | |
|---|---|---|---|---|---|---|
| Bonds and Debentures (1 year or less) | 15,000 | 12,000 | 27,000 | |||
| Bonds and Debentures > 1 year and ≤ 5 years | 45,000 | 45,000 | ||||
| Bonds and Debentures > 5 years | 12,000 | 12,000 |
Describe the impact to the following financial statement items given an increase in the market rates:
- i. Bonds and Debentures
- ii. Actuarial Liabilities
- iii. Other Comprehensive Income
Part a (1.5 points)
Answer this question and see the worked solution