SOFE SOFE-AFE Online Practice Questions and Exam Preparation

SOFE SOFE-AFE Online Questions & Answers

• Question 211:

  When policy periods expire, the premiums written are earned and are recognized as:

  A. Liabilities
  B. Expenses
  C. Revenues
  D. None of the above
  C. Revenues

• Question 212:

  In processing ______________, many entities keep a single file for each insured event, with separate identification of each claimant.

  A. Insurance claim
  B. transaction cycle
  C. Liability claim
  D. Compensation period
  C. Liability claim

• Question 213:

  What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?

  A. ethical act
  B. controlled procedure
  C. structured settlement
  D. None of the above
  C. structured settlement

• Question 214:

  _______ include financial statements and notes, both on a consolidated and non consolidated basis.

  A. The annual Return
  B. Provincial Adequacy Return
  C. Constraints of self assessment
  D. Static Capital Adequacy Test
  A. The annual Return

• Question 215:

  Scope of Examination and Report of Independent Certified Public Accountant states that:

  A. the insurer shall also require that the independent certified public accountant subject the data used by the appointed actuary to testing procedure.
  B. the insurer shall also require that the group of certified public accountant subject the data used by the appointed actuary to planning procedure.
  C. the investor shall also require that the independent certified private accountant subject the data used by the appointed actuary to developing procedure.
  D. the investor shall also require that the independent certified public accountant subject the data used by the appointed actuary to maintaining procedure.
  A. the insurer shall also require that the independent certified public accountant subject the data used by the appointed actuary to testing procedure.

• Question 216:

  Monetary items and non-monetary items carried at market value are translated into the reporting currency at the rate of exchange in effect on the balance sheet date under:

  A. Dependency method
  B. Equity method
  C. Temporal method
  D. Cash inflow/outflow method
  C. Temporal method

• Question 217:

  Schedule rating:

  A. starts with a real standard, frequently the judgmental rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.
  B. starts with an assumed standard, frequently the manual rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.
  C. starts with an assumed standard, frequently the class rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.
  D. starts with a real standard, frequently the individual rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.
  B. starts with an assumed standard, frequently the manual rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.

• Question 218:

  Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:

  A. Property and expense insurance organizations
  B. Feasibility and performance assurance organizations
  C. Property and liability insurance organizations
  D. Building and asset related organizations
  C. Property and liability insurance organizations

• Question 219:

  Generally, a company earns a servicing fee when it retains the servicing of a block of loans in which it has sold all or part of the block. Service fees received from sales of participations are recorded as:

  A. Gross income and not netted against interest income remitted to the acquiring party
  B. Unearned revenue and not netted against interest income remitted to the acquiring party
  C. Gross income
  D. Netted against interest income remitted to the acquiring party
  A. Gross income and not netted against interest income remitted to the acquiring party

• Question 220:

  What funnels premium dollars into separate accounts which means segregated pools of bonds or stocks?

  A. Variable life insurance
  B. Periodic life insurance
  C. Insurance plan
  D. Isolated Interest rate
  A. Variable life insurance