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AFE · Question #126

The method used to account for insurance and reinsurance contracts that do not transfer insurance risk is referred to as:

The correct answer is D. Deposit accounting. See the full explanation below for the reasoning.

Question

The method used to account for insurance and reinsurance contracts that do not transfer insurance risk is referred to as:

Options

  • AAccounted revenue
  • BPremium deficiency
  • CRetained balance
  • DDeposit accounting

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    12% (3)
  • C
    8% (2)
  • D
    76% (19)

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