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Accredited Financial Examiner

Last Update 14 hours ago Total Questions : 286

The Accredited Financial Examiner content is now fully updated, with all current exam questions added 14 hours ago. Deciding to include AFE practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our AFE exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these AFE sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Accredited Financial Examiner practice test comfortably within the allotted time.

Question # 51

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

Question # 52

Principal objectives of state statutes are: to investigate and settle some or all of the

A.

restrict investments of insurance entities

B.

prescribe methods of admitted asset recovery

C.

acquisition of risk-based capitals

D.

Both B & C

Question # 53

The private pools can fall in which two categories:

A.

Risk retention and sale groups

B.

Risk retention and purchasing groups

C.

Public and purchasing groups

D.

None of the above

Question # 54

When securities repurchased under repos commonly have a principal amount that differs from principal amount of the security originally sold under the agreement, is known as:

A.

Splintering act

B.

Breakage

C.

Rollover

D.

None of the above

Question # 55

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

Question # 56

Home office record-maintenance methods may include:

A.

duplication of branch records

B.

maintenance of detailed entries for analytical purposes

C.

use of planning procedures from main office for both premiums and cash

D.

All of the above

Question # 57

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

Question # 58

___________ is an amount of money, loaned at interest for a specified term, secured by real estate and by its improvements such as buildings and infrastructure. This form of instrument itself varies by jurisdiction, but the debt is always evidenced by an accompanying promissory note.

A.

Mortgage Loan

B.

Real estate lending

C.

Conventional Commercial Loans

D.

CMBS

Question # 59

What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?

A.

Valuation data

B.

Verification note

C.

Transaction cycle

D.

Investment evaluation

Question # 60

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

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