SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 161:

  Reporting investments, set requirements regarding matters such as location of asset and set limitations on investing in future are all prescribed by a method called:

  A. Insurance investment
  B. State regulations
  C. Intent of investment
  D. Market security lending
  B. State regulations

• Question 162:

  When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deducible, this leads to the formation of:

  A. Portfolio
  B. Claims
  C. Captives
  D. Fronting
  C. Captives

• Question 163:

  Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?

  A. Appraisal-term acts
  B. Variable-term portfolio
  C. Fixed-term portfolio
  D. Revenue-earned portfolio
  C. Fixed-term portfolio

• Question 164:

  An estimate due to time lags in the receipt of reports from cendants is called reinsurance.

  A. True
  B. False
  A. True

• Question 165:

  Which of the following is the significant requirement for ongoing regulatory reporting to the Office of the Superintendent of Financial Institutions ("OSFI")?

  A. The monthly Return
  B. Capital Adequacy Return
  C. Constraints of Sound Business
  D. Static Capital Adequacy Test
  B. Capital Adequacy Return

• Question 166:

  What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?

  A. Valuation data
  B. Verification note
  C. Transaction cycle
  D. Investment evaluation
  C. Transaction cycle

• Question 167:

  What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?

  A. Harmonizing graph
  B. Balance curve
  C. Price behavior curve
  D. List pricing graph
  C. Price behavior curve

• Question 168:

  Revenue risk is defined as:

  A. the general administrative costs of insurers include components that do not necessarily vary with the level of the equity markets
  B. the general administrative costs of investors include components that must necessarily vary with the level of the equity markets
  C. the particular administrative costs of insurers include components that must necessarily vary with the level of the equity markets
  D. the general administrative costs of investors include components that do not vary with the level of the equity markets
  A. the general administrative costs of insurers include components that do not necessarily vary with the level of the equity markets

• Question 169:

  The method used to account for insurance and reinsurance contracts that do not transfer insurance risk is referred to as:

  A. Accounted revenue
  B. Premium deficiency
  C. Retained balance
  D. Deposit accounting
  D. Deposit accounting

• Question 170:

  Which are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance?

  A. Service acts
  B. Performance segments
  C. Control segments
  D. Operating segments
  D. Operating segments