Free SOFE-AFE Exam Dumps Preview

What is the second-order measure of the interest rate sensitivity of an instrument and the sensitivity of duration to changes in interest rates?

Which of the following is NOT the Asset/ Liability Management (ALM) activity?

Short-duration contracts provide insurance protection for fixed period and can cancel the contract at the end of any contract period.

The two most common types of dollar rolls are:

Tax Act states that:

The loss reserve estimate is a significant estimate in the financial statements of an uninsured entity.

A package of coverage including most property and liability coverage except workers' compensation, automobile insurance and surely bonds is called:

What is the act in which the main sections are for Canadian companies and for foreign companies?

GAAP have two important functions. First, they provide a set of standards that endeavor to measure with reasonable accuracy the assets held, liabilities owed, revenue earned, and expenses incurred by the company. For life insurance companies these measurement rules have been prescribed specifically for their specialized products. The second important function of GAAP is:

Reinsurance is defines as:

When premium income less return premiums arising from policies issued or other contracts entered into reinsure other insurance entities that provide the related primary coverage are called:

The purest representation of asset/liability dynamics is instead through ____________, which measure assets and liabilities according to the cash flows they generate.

Asset and liability management is:

The contracts that are not subject to unilateral changes in its provision and requires the performance of various functions and services for an extended period is called:

What is considered "pure" mortality protection?

Subrogation is:

To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?

_______________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.

The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each $l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon amount due at maturity.

Which are the types of misstatements relevant to the auditor's consideration of fraud in a financial statement audit?

The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the security represents:

Which control includes the procedures for system design, including the acquisition of software packages, should encourage active participation by the accounting department and internal auditors?

Experience refund provisions of group insurance contracts are most often concerned with the manner of distributing any profits between the insurer and the insured group. The agreements usually contain provisions specifying how losses will affect the profit allocations for the insured group. In such situation:

What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?

Spreading of risks among insurance entities is called:

___________ is an amount of money, loaned at interest for a specified term, secured by real estate and by its improvements such as buildings and infrastructure. This form of instrument itself varies by jurisdiction, but the debt is always evidenced by an accompanying promissory note.

Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.

Supplementary contracts may be issued by an insurer upon the termination of a life insurance contract that has been terminated by death, maturity, or surrender. The policyholder, if living or the beneficiary elects the option under which the proceeds are paid. The payment options usually available are:

What seeks to identify and exploit existing or potential synergies in a company's diverse business activities?

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

In which policies the contract provides for insurance coverage for a fixed period of duration and enables the insurer to not renew the contract or adjust the provisions of the contract at the end of the contract period?

Reduction for salvage is:

The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company's general account business?

Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.

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

What is largely systematic that is; all insured risks are strongly affected by certain common influences, like developments in the capital markets?

Immunization theory says that:

What technique uses a risk-adjusted discount rate and contractual, promised, or most likely cash flows?

Which of the following is NOT the category of Life and health insurers in Canada?

Insurers issuing participating policies sometimes incur dividends which have been earned but which have not been disbursed or otherwise credited as of the financial statement date. Such dividends represent a due and unpaid liability amount. Reasons why dividends may be due and unpaid include all of the following EXCEPT:

In a yield-maintenance agreement:

A holistic analysis in a multi-scenario framework of all significant factors that can affect an insurer's future financial condition is called:

The name of each Subsidiary, Controlled and Affiliated (SCA) entity and percentage of ownership of common stock must be put to disclosure when: