SOFE Accredited Financial Examiner AFE Question # 44 Topic 5 Discussion

SOFE Accredited Financial Examiner AFE Question # 44 Topic 5 Discussion

AFE Exam Topic 5 Question 44 Discussion:
Question #: 44
Topic #: 5

Life insurance companies frequently make mortgage loans to affiliated companies (such as subsidiaries or companies owned by a common parent company) and to joint ventures in which the life insurance company is a joint venturer. The company must carefully examine:


A.

An affiliated company or joint venture and the transactions related to it


B.

The propriety of the accounting treatment for each loan to an affiliated company or joint venture and the transactions related to it


C.

The propriety of the accounting treatment for each loan


D.

None of these


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