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SOFE AFE - Accredited Financial Examiner

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Total 286 questions

A basic premise underlying the application of is that it is reasonable to assume that plausible relationships among data exist and continue in the absence of known conditions to the contrary.

A.

Independent estimates

B.

Statistical claims

C.

Analytical procedures

D.

None of the above

The establishment of loss reserves generally requires considerable judgment and knowledge of the entity’s business is known as:

A.

integration assessment

B.

procurement assessment

C.

qualitative assessment

D.

quantitative assessment

What method assumes that an entity’s historical experience relating to the timeliness of settlement will be predictive of future results?

A.

Paid loss projection

B.

Unpaid loss projection

C.

Incurred loss projection

D.

Loss ratio projection

Investments in equities by a life insurance company may not exceed the total of

A.

70 percent of the insurance company’s regulatory capital

B.

15 percent of the liabilities in respect of non-participating policies

C.

25 percent of the liabilities in respect of participating policies

D.

All of the above

Insurance agents act as contractors in groups who express one or more entity with express authority to act for the entity in dealing with insureds.

A.

True

B.

False

The potential for loss resulting from changes in market interest rates are known as:

A.

Interest rate risk

B.

Interest rate loss

C.

Change rate risk

D.

Change rate loss

What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?

A.

Harmonizing graph

B.

Balance curve

C.

Price behavior curve

D.

List pricing graph

From what the most direct value-based requirements arise which are present in account value accumulation products?

A.

profit margins

B.

policy holding rates

C.

implicit interest rates

D.

withdrawal provisions

Subrogation is:

A.

legal right of the distributer to recover from vendors who may be wholly responsible for the loss paid under the terms of the agreement.

B.

legal right of the insurer to recover from a third party who may be wholly or partly responsible for the loss paid under the terms of the policy.

C.

legal right of the claimer to recover from the organization that may be wholly or partly responsible for the loss paid under the terms of the company’s policy.

D.

legal right of the business to recover from a third party who may be wholly responsible for the loss paid under the terms of the policy.

Who is responsible for accounting for customer remittance advices and the agent’s current account?

A.

Accounts department

B.

Customer release policy

C.

Payment policy

D.

Premium collection department