Which statement correctly describes a non-category investment gain in the IEE?

• A. Investment gain on funds attributable to insurance transactions
• B. Investment gain attributable to capital & surplus
• C. Net investment income
• D. Investment loss on funds attributable to insurance transactions

Answer: (C)

In the IEE (Investment Experience Evaluation), investment gains and losses are allocated to specific funds tied to different parts of the insurer’s balance sheet. A non-category investment gain is one that isn’t attributable to a particular fund like funds from insurance transactions or from capital & surplus. Because it isn’t linked to a specific category, it is recorded as part of net investment income, reflecting the overall investment performance for the period. The other options describe gains or losses tied to particular funds or describe a loss, not a generic gain that belongs in net investment income. So the non-category gain is best described as net investment income.