SOFE SOFE Certification SOFE-CFE Questions & Answers

• Question 191:

  When the insurer or the intermediary may prepare a monthly recapitulation of premium and commission transactions between the parties, commonly called:

  A. account current

  B. account reimbursement

  C. balance share

  D. premium debts

  Correct Answer: A

• Question 192:

  A market quote or an appraisal is used to determine what of property held for sale?

  A. cash equivalents

  B. annual fair value

  C. property value

  D. current fair value

  Correct Answer: D

• Question 193:

  All investments with remaining maturities (or repurchase dates under repurchase agreements) of one year or less at the time of acquisition are called:

  A. Insured investments

  B. Long-term investments

  C. Short-term investments

  D. Cash investments

  Correct Answer: C

• Question 194:

  The amount of the impairment is the difference between the net fair value (appraised) value less estimated costs to sell) of the collateral and the insurer's recorded investment in:

  A. mortgage

  B. fair value

  C. real state

  D. valuation of securities

  Correct Answer: A

• Question 195:

  Any real estate which is owned by and more than 50 percent occupied (based on rentable square footage) by an insurer and its' affiliates is considered property occupied by the company.

  A. True

  B. False

  Correct Answer: A

• Question 196:

  If the price is higher than par, the excess is the ____________; if the price is lower than par, the deficiency is the ____________.

  A. bond surplus and bond deficit

  B. bond schedule and bond reported

  C. bond premium and bond discount

  D. bond capitalization and bond depreciated

  Correct Answer: C

• Question 197:

  Any securities representing a creditor relationship, whereby there is a fixed schedule for one or more future payments are called:

  A. Admitted assets

  B. Policy imbursement

  C. Yield amount

  D. Bonds

  Correct Answer: D

• Question 198:

  The amount the owner expects to receive when the bond matures is known as:

  A. Maturity value

  B. Ripe value

  C. Par value

  D. Developed value

  Correct Answer: C

• Question 199:

  _____________ is defined as an existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an enterprise that will ultimately be resolved when one or more future event(s) occur or fail to occur.

  A. Compensation

  B. Impairment

  C. Reimbursement

  D. Contingency

  Correct Answer: B

• Question 200:

  Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events is called:

  A. Asset

  B. Determined asset

  C. Operating Performance

  D. Investment property

  Correct Answer: A