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Accredited Financial Examiner

Last Update 22 hours ago Total Questions : 286

The Accredited Financial Examiner content is now fully updated, with all current exam questions added 22 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 # 4

What of a life insurer’s is determined by applying factors for risk components to specific on and off-balance sheet assets or liabilities and by adding the results?

A.

The annual Return

B.

Business policy

C.

Provincial act

D.

Capital requirement

Question # 5

Evidences the fair market value of the property that is security for the mortgage loan. The appraisal value is used to determine that the loan to market value ratio is in compliance with regulatory requirements. It also is used to determine any non-admitted mortgage loan amount. Appraisals are obtained from:

A.

Independent, qualified appraisers

B.

The company’s own qualified appraisers

C.

Federal Housing Administration

D.

Any one out of A and B

Question # 6

The loss reserve estimate is a significant estimate in the financial statements of an uninsured entity.

A.

True

B.

False

Question # 7

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

Question # 8

Reinsurance is defines as:

A.

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

B.

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

C.

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

D.

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

Question # 9

What are especially effective in investment strategy, because of the powerful risk management attributes they provide?

A.

Investments trials

B.

Product design

C.

Communication benefits

D.

Derivative instruments

Question # 10

For purposes of establishing an appropriate financial statement reserve, the most important factors to consider are:

A.

the historical adequacy

B.

consistency in the reserving approach

C.

availability of statistical analysis of reserves

D.

All of the above

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