SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 151:

  Home office record-maintenance methods may include:

  A. duplication of branch records
  B. maintenance of detailed entries for analytical purposes
  C. use of planning procedures from main office for both premiums and cash
  D. All of the above
  A. duplication of branch records

• Question 152:

  With which standard, the auditor's substantive procedures must include reconciling the financial statements to the accounting records and should include examining material adjustments made during the course of preparing the financial statements.

  A. Integrated Audit Financial Statement
  B. Public Company Accounting Oversight Board
  C. Audit of Financial Reporting over Internal Control
  D. National Association of Insurance Commission
  B. Public Company Accounting Oversight Board

• Question 153:

  Asset/Liability Management recognizes that the financial impact of an asset or liability is mainly realized through its:

  A. Revenues
  B. Cash flows
  C. Expenses
  D. Investments
  B. Cash flows

• Question 154:

  Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. The Investment Department is responsible for promptly supplying the Accounting Department with:

  A. Accounting data on new loans
  B. Resolving few exceptions reported to it by the Accounting Department, i.e., when a borrower defaults on a loan payment
  C. Data related to changes in existing loans, which affects the accounting function
  D. Alerting the Investment Department promptly whenever an exception to the normal processing routine occurs
  A. Accounting data on new loans
  B. Resolving few exceptions reported to it by the Accounting Department, i.e., when a borrower defaults on a loan payment

• Question 155:

  Which of the following may NOT involve a high degree of management judgment and subjectivity and may present risks of material misstatement due to fraud?

  A. Investments
  B. Deferred acquisition costs
  C. Reinsurance
  D. key estimates
  D. key estimates

• Question 156:

  The agents submit to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is an account current of:

  A. Insurance billing
  B. Direct billing
  C. Rendering basis
  D. Billing basis
  C. Rendering basis

• Question 157:

  Most life insurance companies that are taxable in Canada fall into which one of the following classifications:

  A. Domestic life insurance companies
  B. Multinational life insurance companies resident in Canada
  C. Nonresident life insurance companies operating in Canada through a branch
  D. All of the above
  D. All of the above

• Question 158:

  The Appointed Actuary has a responsibility to express an opinion on the appropriateness of certain actuarially determined amounts in the financial statements.

  A. True
  B. False
  A. True

• Question 159:

  The two most common types of dollar rolls are:

  A. Fixed-coupon and yield-maintenance agreements
  B. Variable-coupon and yield-maintenance agreements
  C. Fixed-coupon and Accounting agreements
  D. Variable -coupon and Principal agreements
  A. Fixed-coupon and yield-maintenance agreements

• Question 160:

  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
  B. Multiple peril