For a life company to describe its Tracker Bond as 'guaranteed', the MINIMUM requirement under the Consumer Protection Code is that the:

• A. life company must have a credit rating of at least AA.
• B. bond must have a term of at least three years.
• C. guarantee must be provided by a third party.
• D. life company must be established in the State.

Answer: (C)

The main idea here is that a label like “guaranteed” on an investment product must have an independent source behind it. Under the Consumer Protection Code, if a Tracker Bond is described as guaranteed, there must be a guarantee backed by a third party, not just the life company’s own promise. This creates an external obligation to meet the guaranteed terms, which protects consumers if the issuer faces difficulties.

Why this is the best fit: a third-party guarantee provides independent security for the promised returns or capital, giving the investor recourse beyond the sponsor’s own assurances. It ensures the guarantee isn’t merely an internal promise that could be weakened if the life company encounters trouble.

The other options don’t satisfy the minimum requirement. A credit rating, while helpful for assessing credit risk, is not what the code requires to label a product guaranteed. The term length and the country of establishment are irrelevant to whether a guarantee exists. The key point is that the guarantee must come from a third party, ensuring an external source of obligation.