SOFE SOFE Certifications AFE Questions & Answers

• Question 131:

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

  A. Insurance impede

  B. Portfolio Reinsurance

  C. Poly-holder insurance

  D. Syndicated insurance

  Correct Answer: B

• Question 132:

  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

  Correct Answer: B

• Question 133:

  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

  Correct Answer: D

• Question 134:

  Risk retention group is:

  A. A public entity formed by the members of the public pool primarily to provide business risk competency to the members.

  B. A business entity formed by the members of the private pool primarily to provide commercial asset insurance to the members.

  C. An insurance entity formed by the members of the private pool primarily to provide commercial liability insurance to the members.

  D. An insurance entity formed by the members of the public pool primarily to provide commercial expense insurance to the members.

  Correct Answer: C

• Question 135:

  The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:

  A. employee pools

  B. claim-serving pools

  C. singular entity pools

  D. None of the above

  Correct Answer: B

• Question 136:

  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

  Correct Answer: B

• Question 137:

  Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:

  A. Property and expense insurance organizations

  B. Feasibility and performance assurance organizations

  C. Property and liability insurance organizations

  D. Building and asset related organizations

  Correct Answer: C

• Question 138:

  The organizations in which the ownership and control of operations are vested in the policyholders are known as:

  A. Private entities

  B. Public entities

  C. Reciprocal entities

  D. Mutual entities

  Correct Answer: D

• Question 139:

  Which of the following is NOT the kind of public entity risk pools?

  A. risk-avoiding pools

  B. insurance-purchasing pools

  C. banking pools

  D. claim-serving pools

  Correct Answer: A

• Question 140:

  In which plan all activities writing automobile insurance in a state are allocated a share of the involuntary business on an equitable basis?

  A. Automobile equitability

  B. Automobile insurance

  C. Automobile assurance

  D. None of the above

  Correct Answer: B