CFAI EOC's reading 30 - Contingent claim risk standard, reading, however

Colum

Can someone help me clarify what is meant by contingent claim risk? Question 27 is an example.
My understanding was that a bond had to be callable to have contingent claim risk, however in this example, they are using standard immunization with non-callable bonds, yet the answer says they have contingent claims risk.

soddy1979

what cfaboston said…for example, life insurance companies have a contingent claims risk due to distermediation.
Best,
TheChad

franzino

It is basically a prepayment risk

draz

isn’t contingent claims risk any risk thats dependent on something else happening? Can be call risk or event risk