SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 191:

  Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:

  A. Rating premiums
  B. Direct premiums
  C. Assumed reinsurance premiums
  D. Ceded reinsurance premiums
  D. Ceded reinsurance premiums

• Question 192:

  These are the loans in which:

  Arrangement is usually called commitment When the structure is completed and put in service, the loan is paid off from the proceeds of the long term financing, whatever its source Proper controls would require the lender to obtain

  documentation for the disbursed portion of the construction loan and be assured that the cost of the structure to date is equivalent to the disbursed portion of the construction loan. What are these?

  A. Undeveloped Land Loans
  B. Construction Loans
  C. Development Loans
  D. Residential Loans
  D. Residential Loans

• Question 193:

  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
  C. the fair value of any expenses

• Question 194:

  The two major asset classes in which life insurers invest are:

  A. annuities and bonds
  B. mortgages and annuities
  C. bonds and investments
  D. bonds and mortgages
  D. bonds and mortgages

• Question 195:

  Which counterparts of duration and convexity are the first- and second order sensitivities of an equity market instrument to changes in the price of the underlying?

  A. Delta and gamma
  B. Gamma and theta
  C. Theta and rho
  D. Alpha and Vega
  A. Delta and gamma

• Question 196:

  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. In such a case the Accounting Department is responsible for all of the following EXCEPT:

  A. Supplying the Investment Department with correct data and reports that summarize all loan transactions
  B. Alerting the Investment Department promptly whenever an exception to the normal processing routine occurs
  C. The design, maintenance, and accuracy of accounting records, for periodic management and exception reports, and for statutory statement preparation
  D. Its records may or may not provide the needed data to support this reporting function
  D. Its records may or may not provide the needed data to support this reporting function

• Question 197:

  Procedures for ensuring that the data used by the loss reserve specialist is completed and accurate due to:

  A. Controls over the preparation of managerial data
  B. Controls over the preparation of accounting estimates
  C. Controls over the preparation of supporting data
  D. Controls over the preparation of assumed alternatives
  C. Controls over the preparation of supporting data

• Question 198:

  Risk retention group is:

  A. A public entity formed by the members of the public pool primarily to provide business risk competency to the members.
  B. A business entity formed by the members of the private pool primarily to provide commercial asset insurance to the members.
  C. An insurance entity formed by the members of the private pool primarily to provide commercial liability insurance to the members.
  D. An insurance entity formed by the members of the public pool primarily to provide commercial expense insurance to the members.
  C. An insurance entity formed by the members of the private pool primarily to provide commercial liability insurance to the members.

• Question 199:

  Short-term portfolios are:

  A. Portfolios consisting of liabilities with maturities of one year to meet dollar needs.
  B. Portfolios consisting of combined revenues of less than one year to meet liquidity needs.
  C. Portfolios consisting of assets with maturities of less than one year to meet liquidity needs.
  D. Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs.
  C. Portfolios consisting of assets with maturities of less than one year to meet liquidity needs.

• Question 200:

  The options for securities that insurance entities own and can deliver if the options are exercised by the option buyers are called:

  A. concealed transactions
  B. covered-call options
  C. financial servicing
  D. safekeeping
  B. covered-call options