IFPUG Accredited Financial Examiner (AFE) - AFE FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?

A. Deferred annuities B. None of the above C. Immediate annuities D. Variable annuities

Discussion 0

Correct Answer: A Vote an answer

Question 2

are referred to as
For reinsurance assumed, the concepts analogous to
attachment points and limits.

A. Severity Levels B. Policy levels C. Retention levels D. Frequency Levels

Discussion 0

Correct Answer: C Vote an answer

Question 3

In which plan all activities writing automobile insurance in a state are allocated a share of the involuntary business on an equitable basis?

A. Automobile equitability B. Automobile insurance C. None of the above D. Automobile assurance

Discussion 0

Correct Answer: B Vote an answer

Question 4

In determining whether an operation is self-sustaining or integrated, what you do not need to consider is:

A. price drivers B. source of financing C. nature of outputs D. location of the market

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Correct Answer: C Vote an answer

Question 5

Insurers issuing participating policies sometimes incur dividends which have been earned but which have not been disbursed or otherwise credited as of the financial statement date. Such dividends represent a due and unpaid liability amount. Reasons why dividends may be due and unpaid include all of the following EXCEPT:

A. The policy anniversary date is near the end of the calendar year and the policyholder has elected to receive dividends in cash, but the cash dividend has not yet been disbursed B. The policy anniversary date is near the end of the calendar year and the policyholder has elected to have the dividend reduce the premiums, but the premium for the next policy year has not yet been received C. Premium payment transactions not recorded within the last processing cycle for the reporting period. D. All premiums paid to the anniversary date

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Correct Answer: D Vote an answer

Question 6

Valuation technique should be used to measure fair value and is consistent with:

A. security, income and risk approach B. market, performance and cost approach C. market, income and cost approach D. market, income and risk approach

Discussion 0

Correct Answer: C Vote an answer

Question 7

Immunization theory says that:

A. Performance matching requires rebalancing the expense portfolio, but the theoretically correct answer is to rebalance continuously as and when needed only. B. duration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously. C. Investment matching requires rebalancing the liabilities portfolio, but the theoretically correct answer is to rebalance annually. D. Balance matching requires rebalancing the revenues portfolio, but the theoretically correct answer is to rebalance continuously.

Discussion 0

Correct Answer: B Vote an answer

Question 8

In which policies the contract provides for insurance coverage for a fixed period of duration and enables the insurer to not renew the contract or adjust the provisions of the contract at the end of the contract period?

A. Short duration B. None of the above C. Policy duration D. Contract duration

Discussion 0

Correct Answer: A Vote an answer

Question 9

A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.

A. long duration B. None of the above C. premium policy D. short duration

Discussion 0

Correct Answer: D Vote an answer

Question 10

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?

A. Paying commission basis B. Bushiness costs C. Item basis D. Billing basis

Discussion 0

Correct Answer: C Vote an answer

Question 11

A package of coverage including most property and liability coverage except workers' compensation, automobile insurance and surely bonds is called:

A. Property lines B. Single peril C. Multiple peril D. professional property

Discussion 0

Correct Answer: C Vote an answer