SOFA-CFE Exam Questions
416 real SOFA-CFE exam questions with expert-verified answers and explanations. Page 6 of 9.
- Question #251
What involves multiplying the company's recent annual average payments by a factor, typically based on industry sources and judgment?
- Question #252
What are most often used in actuarial studies of ratemaking or loss reserving?
- Question #253
The origin period for a claim is the period when the claim department first learns of the claim.
- Question #254
___________________are often organized with the origin period set to the period in which the contract incepted.
- Question #255
Loss development triangles conveniently display the combination of:
- Question #256
The greater the number of exposure units insured during an origin year, the more claims that can be expected.
- Question #257
What affects claims from all origin periods and all development periods that are in the process of settling during a calendar period?
- Question #258
The actuary tests liabilities estimated in the past with the most recent information in which testing scheme?
- Question #259
In_____________, the actuary varies the assumptions and the models to test the sensitivity of the reported or carried loss liabilities.
- Question #260
Which of the following is Correct?
- Question #261
Amortization of the net actuarial gain or loss is to be included as a component of ________________benefit cost for a year
- Question #262
The growth contingent is based upon a relationship between:
- Question #263
Contracts between an insurance company and its agents can provide for what based upon the profitability of business produced?
- Question #264
The contract usually calls for a ______________of commission to be paid throughout the year, with an adjustment up or down at the end of the year depending on the final loss ratio.
- Question #265
What contract usually includes a fixed commission rate and a fixed reinsurer's fee or profit factor?
- Question #266
What says that companies not authorized or licensed to do business in the domiciliary state of the ceding company?
- Question #267
The minimum amount of policyholders' surplus required for a new insurer depends on which of the following factor?
- Question #268
Who do not issue capital stock, thus they have no stockholders?
- Question #269
What is a voluntary unincorporated business created to write insurance for its subscribers: a group of individuals, partnerships, and corporations in which each agrees to insure th...
- Question #270
______________ is the management of the reciprocal, becoming both the organizer and promoter of the exchange.
- Question #271
Stock of a company that has been issued, fully paid for and subsequently reacquired by the company is known as:
- Question #272
A mutual company may issue shares of guaranty capital that have a stated par value.
- Question #273
Which of the following two factors cannot be repaid unless the surplus of the company is in excess of its required minimum?
- Question #274
Insurance protection sold by an insurer is described in a written agreement (contract) between an insurance company and the insured, called:
- Question #275
The policy issued by the insurer to the insured (an individual or a business enterprise) is referred to as ______________and gives rise to the insurer's "direct" written insurance...
- Question #276
The price charged by the reinsurer under such a contract that represents reinsurance premium commonly known as:
- Question #277
An insurer's premiums written are comprised of which premiums derived from policies and policy endorsements entered in a given accounting period.
- Question #278
The amount of premiums written is generally used as a basis for determining compensation paid to the agent, called:
- Question #279
Date recorded, Effective and expiration dates, Geographic location, Company, Producer are all needs for the identification of:
- Question #280
Premiums and commissions coded as premiums receivable, premiums written, and commission expense can be accumulated to provide summary control data for entry into the:
- Question #281
Prior to codification, Statutory Accounting Practices (SAP) allowed recognition of premium by:
- Question #282
At the completion of the audits of policies, when the actual amount of _________________ is known, companies are required to adjust the estimate through the revenue accounts.
- Question #283
Special general ledger controls over such billed amounts that are not yet due (until their effective dates) typically are used for administering the billing function; these special...
- Question #284
What billing occurs where the agent renders a statement to the insurer reflecting premiums which are owed to the insurer, less the agent's commission, and subsequently remits payme...
- Question #285
What are generally based on a percentage of the premium written?
- Question #286
When gross premiums written are reduced by ceded reinsurance premiums in financial statements, the result is termed as:
- Question #287
On which premiums, the insurer generally pays the regular commission to the agent following collection of the premium.
- Question #288
A contract which has the final policy premium calculated based on the loss experience of the insured during the term of the policy is called:
- Question #289
In personal lines business, premiums are increasingly collected through the means of:
- Question #290
If a receivable is greater than ninety days due at the end of the reporting period, it is considered non- admitted even if it is collected prior to the issuance of the financial st...
- Question #291
The price for granting extended payment terms is called:
- Question #292
Whatever the type, if _______________is not paid when due, the policy is canceled and the return unearned premium is used to pay the defaulted balance.
- Question #293
Payment schedules are often arranged so that the unearned premium on the related policies serves as:
- Question #294
Allocable expenses for property and casualty insurance companies shall be classified into which one of the following three categories on the Underwriting and Investment Exhibit?
- Question #295
________________ along with its companion discipline capital accounting, is an integral part of accounting in a total systems concept.
- Question #296
A managerial accounting system can be of help to management in its decision-making processes, and in _______________ system (or, in broader terms, an expense information system) is...
- Question #297
The type of unitary measurement that can be helpful in constructing budgets and evaluating performance in both full absorption and direct costing systems is known as:
- Question #298
The type of system can be helpful in showing relationships between volumes of production and variable costs, and the resulting impacts on net income, faster than more conventional...
- Question #299
The higher the degree of that reliance, the more time-consuming and costly the audit process is likely to be.
- Question #300
The Specific Risk Analysis (SRA) work-papers used for the review of the operating cycle "Other Expenses" include a review of: