Question

What emphasis does Regulation 9 viii place on credit ratings?

a.

Credit ratings replace risk analysis

b.

Credit ratings are not important for investments

c.

Appropriate risk analysis should not be conducted

d.

Credit ratings should not replace appropriate risk analysis and management

Answer: (d).Credit ratings should not replace appropriate risk analysis and management Explanation:Regulation 9 viii emphasizes that credit ratings should not replace appropriate risk analysis and management on the part of the insurer. The insurer should conduct risk analysis commensurate with the complexity of the products and materiality of other holdings or could refrain from such investment.

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Q. What emphasis does Regulation 9 viii place on credit ratings?

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