SOFE SOFE Certifications AFE Questions & Answers

• Question 141:

  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

  Correct Answer: A

• Question 142:

  Fidelity bonds cover employees against dishonest acts by employees.

  A. True

  B. False

  Correct Answer: A

• Question 143:

  What provide for monetary compensation to third parties for failure by the insured to perform specifically covered acts with in a state period?

  A. Worker compensation pools

  B. Multiple perils

  C. Surety bonds

  D. Inter-insurance act

  Correct Answer: C

• Question 144:

  Excess liability:

  A. covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in a predetermined planning.

  B. covers the insured against the loss in access of an actual amount, but only for profits as covered and defined in an underlying policy.

  C. covers all uninsured against the gain in access of a stated amount, but only for losses as covered and defined in an underlying policy.

  D. covers the insured against the loss in access of a stated amount, but only for losses as covered and defined in an underlying policy.

  Correct Answer: D

• Question 145:

  Which of the following id NOT the kind of Insurance?

  A. Business policies

  B. fire and alliance lines

  C. inland marine

  D. professional liability

  Correct Answer: A

• Question 146:

  A package of coverage including most property and liability coverage except workers' compensation, automobile insurance and surely bonds is called:

  A. Single peril

  B. Multiple peril

  C. Property lines

  D. professional property

  Correct Answer: B

• Question 147:

  The deduction must be based on identification of specific doubtful amounts and is limited to the maximum of doubtful debts identified in the year or a preceding year and 75 percent of the amount reported for statutory purposes.

  A. True

  B. False

  Correct Answer: B

• Question 148:

  Tax Act states that:

  A. A life insurer is subject to an investment income tax of 15 percent on its `net Canadian life investment income

  B. A life insurer is subject to an investment income tax of 25 percent on its `net Canadian life investment income

  C. A life insurer is subject to an investment income tax of 35 percent on its `net Canadian life investment income

  D. A life insurer is subject to an investment income tax of 45 percent on its `net Canadian life investment income

  Correct Answer: A

• Question 149:

  _______________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.

  A. Procedure-related

  B. Policy-related

  C. Standardized- related act

  D. None of the above

  Correct Answer: B

• Question 150:

  The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company's general account business?

  A. Business

  B. Temporal

  C. Principal

  D. Segregated

  Correct Answer: D