SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 111:

  is provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles.

  A. Enterprise evidence
  B. Property evidence
  C. Audit evidence
  D. Regulatory evidence
  C. Audit evidence

• Question 112:

  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
  B. Risk retention and purchasing groups

• Question 113:

  Generally, residential loans are open to prepayment at any time without penalty. To protect against a deficiency, mortgage loans should not exceed the market value of the mortgaged property and in fact are usually made for:

  A. No more than 80 percent of the value
  B. Not less than 80 percent of the value
  C. No more than 90 percent of the value
  D. Not less than 70 percent of the value
  A. No more than 80 percent of the value

• Question 114:

  Financial statements of a self-sustaining foreign operation are translated using the current rate method whereby assets and liabilities are translated in the reporting currency using the exchange rate.

  A. True
  B. False
  A. True

• Question 115:

  Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:

  A. A tight asset/liability match
  B. A well-diversified core of investments
  C. A tight asset/liability match with a well-diversified core of investments.
  D. Real estate lending by insurance companies
  C. A tight asset/liability match with a well-diversified core of investments.

• Question 116:

  What represent the ownership interests in the net assets of the subsidiary held by persons outside the controlling entities' structure?

  A. External control
  B. Minority interests
  C. Permanent stockholder
  D. None of the above
  B. Minority interests

• Question 117:

  To meet informational demands, internal management reporting will entail alternate views of the organization's financial performance. These areas, or views, are including all of the following EXCEPT:

  A. organizational/ business unit (Profit center, department, distribution system etc)
  B. Dealing with processes; product or service lines (i.e. ordinary life insurance, pension services like deferred annuities, group risks such as life or accident and health, etc.)
  C. Dealing with similar risks or characteristics; and customer segment (i.e. individuals with specific levels of net worth, small businesses, large corporations, etc.)
  D. None of these
  D. None of these

• Question 118:

  Fidelity bonds cover employees against dishonest acts by employees.

  A. True
  B. False
  A. True

• Question 119:

  What may leave more risk than a company should prudently assume due to the risk exacerbating features of a particular product?

  A. Feasible investment strategy
  B. Design strategy
  C. Risk strategy
  D. Product risk strategy
  A. Feasible investment strategy

• Question 120:

  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
  C. Surety bonds