SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 121:

  For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.

  A. maximum credited rate
  B. minimum credited rate
  C. implicit interest rate
  D. explicit interest rate
  C. implicit interest rate

• Question 122:

  What limits the repurchase price to a stipulated percentage of the face amount of the certificate?

  A. Price-cap provision
  B. Investment provision
  C. Limit provision
  D. Par cap provision
  D. Par cap provision

• Question 123:

  Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.

  A. True
  B. False
  B. False

• Question 124:

  What is made on an instrument-by-instrument basis, generally when an instrument is initially recognized in the financial statements?

  A. Election
  B. Disclosure
  C. Eligibility
  D. Discount
  A. Election

• Question 125:

  What is largely systematic that is; all insured risks are strongly affected by certain common influences, like developments in the capital markets?

  A. Performance risk
  B. Non-investment risk
  C. Investment risk
  D. Productive risk
  C. Investment risk

• Question 126:

  The amount that currently would be required to replace the service capacity of an asset is called:

  A. Risk approach
  B. Market approach
  C. Income approach
  D. Cost approach
  D. Cost approach

• Question 127:

  In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:

  A. general inflation rates
  B. judicial decisions assessing liability
  C. judicial decisions regarding noneconomic damages
  D. All of the above
  D. All of the above

• Question 128:

  Which of the following is NOT the type of Merit rating?

  A. Policy rating
  B. Schedule rating
  C. Experience rating
  D. Retrospective Experience rating
  A. Policy rating

• Question 129:

  The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

  A. True
  B. False
  A. True

• Question 130:

  What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?

  A. Variable annuities
  B. Deferred annuities
  C. Immediate annuities
  D. None of the above
  B. Deferred annuities