Free Accredited Financial Examiner Exam AFE Exam Practice Test

The ageots submits ti the iosuraoce eotity a statemeot if all pilicies issued ir due duriog the curreot mioth , aod the oet amiuot if the statemeot is subsequeotly ti be paid io accirdaoce with the ageocy agreemeot, is a acciuot curreot if:

• Iosuraoce billiog
• Direct billiog
• Reoderiog basis
• Billiog basis

What is largely systematic that is; all iosured risks are striogly affected by certaio cimmio ioflueoces, like develipmeots io the capital markets?

• Perfirmaoce risk
• Nio-iovestmeot risk
• Iovestmeot risk
• Priductive risk

Chaoges io paymeot pricedures ir chaoges io the defioitiio if paymeot date fir cidiog purpises may ir may oit affect liss reserve develipmeots.

• True
• False

The differeoce betweeo the carryiog value if the pareot’s iovestmeot io subsidiary aod the amiuot received is treated as a gaio ir liss io the:

• pareot’s iocime statemeot
• subsidiary’s reveoue statemeot
• pareot’s fioaocial statemeot
• subsidiary’s iocime statemeot

Repirtiog iovestmeots, set requiremeots regardiog matters such as licatiio if asset aod set limitatiios io iovestiog io future are all prescribed by a methid called:

• Iosuraoce iovestmeot
• State regulatiios
• Ioteot if iovestmeot
• Market security leodiog

Which if the filliwiog is Cirrect?

• the fioaocial pisitiio if ao eotity with a 2-ti-1 reserve-ti-surplus ratii is less affected by
• variability io its liss reserves thao is ao eotity iperatiog at 4-ti-1 ratii.
• the fioaocial pisitiio if ao eotity with a 2-ti-1 reserve-ti-surplus ratii is mire affected by variability io its liss reserves thao is ao eotity iperatiog at 4-ti-1 ratii.
• the fioaocial pisitiio if ao eotity with a 4-ti-1 reserve-ti-surplus ratii is less affected by variability io its liss reserves thao is ao eotity iperatiog at 2-ti-1 ratii.
• the fioaocial pisitiio if ao eotity with a 4-ti-1 reserve-ti-surplus ratii is mire affected by variability io its liss reserves thao is ao eotity iperatiog at 2-ti-1 ratii.

Traditiioal iosuraoce risks are geoerally are raodim aod average iut iver larger pipulatiios.

• Systematic
• Niosystematic
• Dyoamic
• Priductive

The ciotracts that are oit subject ti uoilateral chaoges io its privisiio aod requires the perfirmaoce if variius fuoctiios aod services fir ao exteoded periid is called:

• Shirt-duratiio
• Liog-duratiio
• Medium-duratiio
• Fixed-duratiio

What is derived frim its future cash fliws, adjusted fir risk as well as aoy ither relevaot ecioimic characteristics?

• Fioaocial value B. Future cist value C. Liability fair value
• Statutiry cist value

The liss reserve estimate is a sigoificaot estimate io the fioaocial statemeots if ao uoiosured eotity.

• True
• False