Effective Study Techniques for the SOFE AFE Exam

agreements may contain par cap provisions that could significantly alter the economics of the transactions.

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:

An entity method is applied to corporate joint ventures and to investments in certain less than majority-owned companies in circumstances where:

_______________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.

When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deducible, this leads to the formation of: