SOFE SOFE Certifications AFE Questions & Answers

• Question 211:

  With fixed deferred annuities;

  A. the credited rate is determined fiscally and declared by the insurance company

  B. the debited rate is periodically re-determined and declared by the organization

  C. the credited rate is periodically re-determined and declared by the insurance company

  D. the debited rate is determined fiscally and declared by the organization

  Correct Answer: C

• Question 212:

  What funnels premium dollars into separate accounts which means segregated pools of bonds or stocks?

  A. Variable life insurance

  B. Periodic life insurance

  C. Insurance plan

  D. Isolated Interest rate

  Correct Answer: A

• Question 213:

  With traditional whole life insurance:

  A. an interest rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance

  B. an expense rate on reserves is explicit on the premium rate and is locked in at time of policy issuance

  C. an interest rate on reserves is implicit in the premium rate and is locked in at time of policy issuance

  D. a debt rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance

  Correct Answer: C

• Question 214:

  What features a reserve that accumulates at company declared credited interest rates, which are periodically reset?

  A. Credited life insurance

  B. Periodic life insurance

  C. Premium life insurance

  D. Universal life insurance

  Correct Answer: D

• Question 215:

  What is considered "pure" mortality protection?

  A. Life insurance

  B. Premium plan

  C. Transience policy

  D. Assurance plan

  Correct Answer: A

• Question 216:

  What usually features a fixed premium that acts to levelize the policyholder's outlay over the lifetime of the policy?

  A. Whole life insurance

  B. Permanent life insurance

  C. Fiscally examined insurance

  D. Life time insurance

  Correct Answer: B

• Question 217:

  The difference between the carrying value of the parent's investment in subsidiary and the amount received is treated as a gain or loss in the:

  A. parent's income statement

  B. subsidiary's revenue statement

  C. parent's financial statement

  D. subsidiary's income statement

  Correct Answer: A

• Question 218:

  The name of each Subsidiary, Controlled and Affiliated (SCA) entity and percentage of ownership of common stock must be put to disclosure when:

  A. For all investments in SCA entities that exceed 20 percent of the total admitted expenses of the insurer.

  B. For all investments in SCA entities that exceed 15 percent of the total admitted liabilities of the insurer.

  C. For half of the investments in SCA entities that exceed 6 percent of the total admitted assets of the insurer.

  D. For all investments in SCA entities that exceed 10 percent of the total admitted assets of the insurer.

  Correct Answer: D

• Question 219:

  Which of the following is NOT included when initial acquisition of Subsidiary, Controlled and Affiliated Entities (SCA) is recorded as the sum of?

  A. any cash payment

  B. the fair value of other assets distributed

  C. the fair value of any expenses

  D. any direct costs of the acquisition

  Correct Answer: C

• Question 220:

  It usually is acceptable to use the subsidiary's statements if the difference in fiscal periods is:

  A. not more than 2 months

  B. not more than 3 months

  C. not more than 4 months

  D. not more than 5months

  Correct Answer: B