AFE Practice Questions

A.  

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a minimum guaranteed amount for those annuities not having life contingencies

B.  

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a minimum guaranteed amount for those annuities involving life contingencies

C.  

Either immediately or at some future date, perpetual income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a maximum guaranteed amount for those annuities involving life contingencies

D.  

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain small number of payments

A.  

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

B.  

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

C.  

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

D.  

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

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.

A.  

ethical act

B.  

controlled procedure

C.  

structured settlement

D.  

None of the above

A.  

annuities and bonds

B.  

mortgages and annuities

C.  

bonds and investments

D.  

bonds and mortgages

A.  

True

B.  

False

A.  

Interest rate risk

B.  

Interest rate loss

C.  

Change rate risk

D.  

Change rate loss

A.  

long duration

B.  

premium policy

C.  

short duration

D.  

None of the above

A.  

Fixed agreement

B.  

Standard agreement

C.  

Short-term agreement

D.  

Repurchase agreement

A.  

True

B.  

False