AFE SOFE Accredited Financial Examiner exact Exam Questions

Accredited Financial Examiner

Last Update 8 hours ago Total Questions : 286

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Question # 71

Reinsurance is defines as:

to pay another party to assume a stream of contingent expenses, for a premium over the expected cost

to pay another party to assume a stream of contingent revenues, for an interest over the expected cost

to sell another party to assume a stream of contingent assets, for a premium over the actual cost

to sell another party to assume a stream of contingent expenses, for a discount over the expected cost

Question # 72

An annuity contract provides:

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a minimum guaranteed amount for those annuities not having life contingencies

Either immediately or at some future date, perpetual income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a maximum guaranteed amount for those annuities involving life contingencies

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain small number of payments

Question # 73

The method which assumes that an entity’s experience in estimating case-basis reserves will be repeated in the future is called:

Paid loss projection

Reported loss development projection

Incurred loss projection

Internal entity loss projection

Question # 74

Which of the following is the objective to the evaluation and risk-accepting function?

Evaluating and acceptability of risk

Determining the premium

Evaluation of entity’s capacity to retain risk

All of the above

Question # 75

For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.

maximum credited rate

minimum credited rate

implicit interest rate

explicit interest rate

Question # 76

When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deducible, this leads to the formation of:

Portfolio

Claims

Captives

Fronting

Question # 77

The estimated liability includes the amount of money that will be used for future payments of:

Reported claims to insurer

Claims related to insured events

Claim adjustment expenses

All of the above

Question # 78

What is applied to the sale of all or a block of an entity’s insurance in force of another entity?

Insurance impede

Portfolio Reinsurance

Poly-holder insurance

Syndicated insurance

Question # 79

A liability for premiums paid in advance can also arise when insurers allow policyholders to pay several years’ premiums at one time. Since the insurer has the use of policyholder funds that are not yet due, it is customary for the insurer to:

Credit Assets

Discount the value of such premiums and accept a lesser amount in cash

Discount the value of such premiums

Accept a lesser amount in cash

Question # 80

Subrogation is:

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

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.

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.

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.