Which one of the following statements is correct?

The correct answer is: C. Both the statements above are correct.

The foreign exchange regulations apply if the life insured is a non-resident. This is because the life insured is the person whose life is insured under the policy. If the life insured is a non-resident, then the policy is considered to be a foreign investment. As such, the foreign exchange regulations will apply to the policy.

The foreign exchange regulations also apply if the claimant is a non-resident. This

is because the claimant is the person who is entitled to the benefits under the policy if the life insured dies. If the claimant is a non-resident, then the benefits under the policy will be considered to be a foreign investment. As such, the foreign exchange regulations will apply to the benefits.

Here is a brief explanation of each option:

• Option A: The foreign exchange regulations apply if the life insured is a non-resident. This is correct because the life insured is the person whose life is insured under the policy. If the life insured is a non-resident, then the policy is considered to be a foreign investment. As such, the foreign exchange regulations will apply to the policy.
• Option B: The foreign exchange regulations apply if the claimant is a non-resident. This is also correct because the claimant is the person who is entitled to the benefits under the policy if the life insured dies. If the claimant is a non-resident, then the benefits under the policy will be considered to be a foreign investment. As such, the foreign exchange regulations will apply to the benefits.
• Option C: Both the statements above are correct. This is the correct answer because both statements are correct.
• Option D: Both the statements above are wrong. This is the wrong answer because both statements are correct.