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Question # 31

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?

Options:

A.  

Undeveloped Land Loans

B.  

Construction Loans

C.  

Development Loans

D.  

Residential Loans

Discussion 0
Question # 32

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.

Options:

A.  

True

B.  

False

Discussion 0
Question # 33

From what the most direct value-based requirements arise which are present in account value accumulation products?

Options:

A.  

profit margins

B.  

policy holding rates

C.  

implicit interest rates

D.  

withdrawal provisions

Discussion 0
Question # 34

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?

Options:

A.  

Service acts

B.  

Performance segments

C.  

Control segments

D.  

Operating segments

Discussion 0
Question # 35

Short-term portfolios are:

Options:

A.  

Portfolios consisting of liabilities with maturities of one year to meet dollar needs.

B.  

Portfolios consisting of combined revenues of less than one year to meet liquidity needs.

C.  

Portfolios consisting of assets with maturities of less than one year to meet liquidity needs.

D.  

Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs.

Discussion 0
Question # 36

What is the purpose of consolidated financial statements?

Options:

A.  

These statements are intended to reflect the financial position and results of operations of an economic entity rather than a legal entity.

B.  

These statements are intended to ignore the financial position and results of operations of an economic entity rather than an unofficial entity.

C.  

These statements are intended to reflect the financial position and results of operations of a credited entity rather than a supplemental entity.

D.  

None of the above

Discussion 0
Question # 37

For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.

Options:

A.  

maximum credited rate

B.  

minimum credited rate

C.  

implicit interest rate

D.  

explicit interest rate

Discussion 0
Question # 38

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:

Options:

A.  

A separation of accounting, so that profits applicable to participating and nonparticipating business can be appropriately determined

B.  

This is a critical process, since profits from participating business are regulated as to their distribution among participating policyholders and the company’s stockholders

C.  

Some jurisdictions require the filing of several of the statutory statement exhibits in three forms, one for the company as a whole

D.  

Any of these

Discussion 0
Question # 39

Principal objectives of state statutes are: to investigate and settle some or all of the

Options:

A.  

restrict investments of insurance entities

B.  

prescribe methods of admitted asset recovery

C.  

acquisition of risk-based capitals

D.  

Both B & C

Discussion 0
Question # 40

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

Options:

A.  

Canadian Companies

B.  

Fraternal Benefit Societies

C.  

Reassurance Companies

D.  

Provincially Licensed Companies

Discussion 0
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