SOFA-CFE Exam Questions

What involves multiplying the company's recent annual average payments by a factor, typically based on industry sources and judgment?

What are most often used in actuarial studies of ratemaking or loss reserving?

The origin period for a claim is the period when the claim department first learns of the claim.

___________________are often organized with the origin period set to the period in which the contract incepted.

Loss development triangles conveniently display the combination of:

The greater the number of exposure units insured during an origin year, the more claims that can be expected.

What affects claims from all origin periods and all development periods that are in the process of settling during a calendar period?

The actuary tests liabilities estimated in the past with the most recent information in which testing scheme?

In_____________, the actuary varies the assumptions and the models to test the sensitivity of the reported or carried loss liabilities.

Which of the following is Correct?

Amortization of the net actuarial gain or loss is to be included as a component of ________________benefit cost for a year

The growth contingent is based upon a relationship between:

Contracts between an insurance company and its agents can provide for what based upon the profitability of business produced?

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.

What contract usually includes a fixed commission rate and a fixed reinsurer's fee or profit factor?

What says that companies not authorized or licensed to do business in the domiciliary state of the ceding company?

The minimum amount of policyholders' surplus required for a new insurer depends on which of the following factor?

Who do not issue capital stock, thus they have no stockholders?

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...

______________ is the management of the reciprocal, becoming both the organizer and promoter of the exchange.

Stock of a company that has been issued, fully paid for and subsequently reacquired by the company is known as:

A mutual company may issue shares of guaranty capital that have a stated par value.

Which of the following two factors cannot be repaid unless the surplus of the company is in excess of its required minimum?

Insurance protection sold by an insurer is described in a written agreement (contract) between an insurance company and the insured, called:

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...

The price charged by the reinsurer under such a contract that represents reinsurance premium commonly known as:

An insurer's premiums written are comprised of which premiums derived from policies and policy endorsements entered in a given accounting period.

The amount of premiums written is generally used as a basis for determining compensation paid to the agent, called:

Date recorded, Effective and expiration dates, Geographic location, Company, Producer are all needs for the identification of:

Premiums and commissions coded as premiums receivable, premiums written, and commission expense can be accumulated to provide summary control data for entry into the:

Prior to codification, Statutory Accounting Practices (SAP) allowed recognition of premium by:

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.

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...

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...

What are generally based on a percentage of the premium written?

When gross premiums written are reduced by ceded reinsurance premiums in financial statements, the result is termed as:

On which premiums, the insurer generally pays the regular commission to the agent following collection of the premium.

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:

In personal lines business, premiums are increasingly collected through the means of:

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...

The price for granting extended payment terms is called:

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.

Payment schedules are often arranged so that the unearned premium on the related policies serves as:

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?

________________ along with its companion discipline capital accounting, is an integral part of accounting in a total systems concept.

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...

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:

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...

The higher the degree of that reliance, the more time-consuming and costly the audit process is likely to be.

The Specific Risk Analysis (SRA) work-papers used for the review of the operating cycle "Other Expenses" include a review of: