|
|
“I know of no case that has held anyone liable for clearly and accurately disclosing material information to investors. In all likelihood, liability should decrease with the use of plain English because it results in less confusing disclosure.”
Isaac Hunt, Jr., former SEC Commissioner, July 17, 1997
|
|
|
|
|
SAMPLE 7 - Re-written by ICS
A “problem bond” is either delinquent or restructured-typically to reduce the interest rate or extend the maturity date.
“Potential problem bonds” are fully current, but management believes they have certain characteristics that make them likely to become “problem bonds.”
The table below provides information about the potential problem bonds and problem bonds in ABC Insurance's investment portfolio as of December 31:
|
Type of bond
|
Year
|
Amount (in
millions) ...
|
... net of
cumulative write-
downs of ... (in
millions)
|
Portion of total
attributable to
policyholder
contracts
|
Potential
problem
|
2004
|
$69
|
$14
|
35%
|
|
|
2003
|
$63
|
$10
|
45%
|
|
|
|
|
|
|
|
Problem
|
2004
|
$119
|
$19
|
29%
|
|
|
2003
|
$137
|
$30
|
24%
|
Click here for original
|
|
|
|
