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SOFE AFE - Accredited Financial Examiner

Page: 4 / 9
Total 286 questions

When premium income less return premiums arising from policies issued or other contracts entered into reinsure other insurance entities that provide the related primary coverage are called:

A.

Indirect premiums

B.

Direct premiums

C.

Assumed reinsurance premiums

D.

Real reinsurance premiums

In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:

A.

general inflation rates

B.

judicial decisions assessing liability

C.

judicial decisions regarding noneconomic damages

D.

All of the above

The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the security represents:

A.

Accounting agreement

B.

Investment income

C.

Dollar price

D.

Saving price

agreements may contain par cap provisions that could significantly alter the economics of the transactions.

A.

Yield-maintenance

B.

Price-cap

C.

Fixed-coupon

D.

Accounting

Coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates is normally refers to as:

A.

Surplus lines

B.

Commercial lines

C.

Risk lines

D.

Standardized lines

Quantifies the sensitivity of the option price to changes in interest rates is known as:

A.

complexity measure

B.

quantifiable measure

C.

effective duration measure

D.

change measure

Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:

A.

Rating premiums

B.

Direct premiums

C.

Assumed reinsurance premiums

D.

Ceded reinsurance premiums

Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.

A.

True

B.

False

The Module Rule requires the insurer to provide:

A.

to the insurance commissioner of the state of domicile, a copy of notification of adverse financial condition

B.

to the auditor, evidence that the notification has been provided to the organization

C.

Both A & B

D.

Neither A nor B

The methods used for the premium rates establishment are:

A.

Manual, judgmental and premium rating

B.

Commercial, judgmental and merit rating

C.

Manual, experimental and merit rating

D.

Manual, judgmental and merit rating