Accredited Financial Examiner
Last Update 4 days ago
Total Questions : 286
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For reinsurance assumed, the concepts analogous to attachment points and limits are referred to as
The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of its statutory financial statements, may include:
The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.
The securities repurchased have the same stated interest rate as, and maturities similar to, the securities sold and are generally priced to result in substantially the same yield is known as:
_______ is contractual right of recovery that entitles the insurer to any proceeds from the disposal of damaged property for which the claim has been made.
Admitted assets are those specifically prescribed by the NAIC Accounting Practices and Procedures Manual or prescribed or permitted by the various jurisdictions. An admitted asset is defined as having probable future economic benefits. It also has three essential characteristics. Which one of the following is out of those characteristics?
What usually features a fixed premium that acts to levelize the policyholder’s outlay over the lifetime of the policy?
To realize the effect on the “bottom line,” or the net gain from operations, from various transactions, one must consider the amount of any liabilities that are released because of the transaction. Assume a death claim entry as follows:
Death proceeds-ordinary $10,000
Dividends on deposit disbursed 1,000
Cash $11,000
On first appearance, one might think that this will cause the net gain from operations to be $11,000 lower. However, if the policy has a reserve of $3,000, the effect on the net gain is only , because the reserve liability of $3,000 and the dividend liability of $1,000 will no longer be shown on the balance sheet
When policy periods expire, the premiums written are earned and are recognized as:
Adjusting and Others (AO) reserves are often provided for by using the calendar year paid-to-paid method rather than the accident year paid-to-paid method used for Inflation in Defense & Cost Containment (DCC) reserves.
Inflation in Defense & Cost Containment (DCC) is evaluated separately and is estimated to occur at the same rate as the rate of inflation in the losses.
Primary coverage involves policies written between an insurer and a customer directly.
For purposes of establishing an appropriate financial statement reserve, the most important factors to consider are:
A Company’s investments are admitted assets properly valued which support the reserves and liabilities, including required capital and surplus. Many jurisdictions permit companies to make some investments that do not meet all of the strict regulatory requirements. These additional investments are often referred to as basket assets. Which of the following is/are true for Basket assets?
What is the second-order measure of the interest rate sensitivity of an instrument and the sensitivity of duration to changes in interest rates?
A substantial investment is defined as any investment comprising more than 15 percent of an enterprise’s voting shares or greater than 35 percent of its equity.
What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?
Interest rates are a key element of any option pricing exercise because cash flows are discounted at interest.
The potential for loss resulting from changes in market interest rates are known as:
A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.
The maturity of which agreement is fixed by the contract and depends on the needs of the borrower and the willingness of the lender?
The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.
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?
The magnitude of the variable annuity benefits provided by a deferred annuity depends on the size of the account value at the end of the accumulation phase.
From what the most direct value-based requirements arise which are present in account value accumulation products?
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?
For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.
A stock life insurance company writing both participating and nonparticipating business must follow special accounting procedures under the laws of certain jurisdictions. The purpose of these special accounting procedures is to provide for:
Principal objectives of state statutes are: to investigate and settle some or all of the
Which of the following is NOT the category of Life and health insurers in Canada?
An attitude that includes a questioning mind and a critical assessment of audit evidence is called:
The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company’s general account business?
TESTED 05 May 2024
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