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SOFE Exam SOFA-CFE Topic 7 Question 94 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 94
Topic #: 7
[All SOFA-CFE Questions]

Insurance companies sometimes issue instruments that have the characteristics of both debt and equity; these instruments are commonly referred to as:

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Suggested Answer: C

Contribute your Thoughts:

Brande
1 months ago
Ha! Surplus notes, easy. Although, sometimes I feel like these insurance exams are just a game of 'Guess the Obscure Term'.
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Angelica
1 months ago
Surplus notes, no doubt about it. Although, I'd love to know who comes up with these names. 'Surplus notes' sounds like something you'd find in the attic, not a financial instrument.
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Lynelle
1 months ago
Hmm, I want to say surplus notes, but I can't help but think there's a trick here. Insurance companies love to throw curveballs, don't they?
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Corrinne
15 days ago
Surplus notes make sense to me as well, but let's think it through just in case.
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Shoshana
18 days ago
I've heard of surplus notes before, so I'm leaning towards that option.
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Britt
25 days ago
I think it's surplus notes too, but you're right, insurance companies can be tricky.
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Anglea
2 months ago
Surplus notes, definitely. I remember learning about these in my insurance law class. They're a unique hybrid instrument.
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Ressie
8 days ago
It's interesting how they can help insurers manage their risk exposure.
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Noah
13 days ago
I think they offer a good balance between debt and equity financing.
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Lorrine
24 days ago
They provide a way for insurance companies to raise capital in a different way.
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Rosio
2 months ago
I agree, surplus notes are a fascinating concept.
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Shala
2 months ago
I'm not sure, but I think it could also be C) Long-term bond notes because they can have elements of both debt and equity.
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Tayna
2 months ago
I agree with Daniela, surplus notes make sense for instruments with characteristics of both debt and equity.
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Vicente
2 months ago
I'm pretty sure these are called surplus notes, but I'm not 100% confident. Gotta love these tricky insurance terms, right?
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Gianna
19 days ago
Surplus notes can be confusing, but once you understand them, it makes sense.
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Filiberto
19 days ago
I've heard of surplus notes before, they definitely have characteristics of both debt and equity.
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Jamie
25 days ago
Yeah, surplus notes sound familiar to me too.
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Kristel
1 months ago
I think you're right, they are called surplus notes.
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Daniela
2 months ago
I think the answer is D) surplus notes.
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