Accredited Financial Examiner
Last Update May 1, 2024
Total Questions : 286
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The process of analyzing and projecting the trends of a company’s capital position given its current circumstances, its recent past, and its intended business plan under a variety of future scenarios is called:
The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:
In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:
is provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles.
In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract may be extended upon mutual agreement of the buyer-lender and seller-borrower.
Life insurance companies frequently make mortgage loans to affiliated companies (such as subsidiaries or companies owned by a common parent company) and to joint ventures in which the life insurance company is a joint venturer. The company must carefully examine:
A logical first step toward understanding of a life and health insurance company and the related financial reporting considerations is to review the manner in which different interested parties view the end result of the accounting process for capital and surplus transactions, for example, the adequacy of the resulting balances.
Key interested parties include:
• Policyholders
• Agents
• Stockholders
• Insurance regulators
• Rating agencies
• Management
The sum of values assigned by claims adjusters to specific known claims that were recorded by the insurance entity but not yet paid at the financial statement date is called:
National Association of Insurance Commissioners stated that, has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.
A holistic analysis in a multi-scenario framework of all significant factors that can affect an insurer’s future financial condition is called:
What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?
Which of the following is NOT the date that is the key to classify the chronology of the data?
What method assumes that an entity’s historical experience relating to the timeliness of settlement will be predictive of future results?
Asset/Liability Management recognizes that the financial impact of an asset or liability is mainly realized through its:
As defined in Accounting Standards Codification, dollar purchase agreements are the agreements to sell and repurchase similar and identical securities.
A company that has its loans serviced, for whatever reason, is usually charged a servicer’s fee. This fee is usually expressed:
When dividends are left to accumulate at interest, the insurer typically sends a notice to each policyholder showing the amount accumulated at the end of the policy year. The notice also shows the dividend credited and interest earned for that policy year. The dividend left at interest may later be received by or credited to the policyholder in several ways. Which of the following is/are out of those ways?
The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.
Generally, Participation income is an income stream due the company and is based upon the financial results of the borrower and/or borrowing business entity. Although it can take several forms, the more prominent ones are:
Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. The Investment Department is responsible for promptly supplying the Accounting Department with:
Accounting for escrow funds is difficult because of the large number of transactions related to such funds. A separate bank account or a trust bank account may be opened, with all escrow receipts deposited into it to prevent:
It usually is acceptable to use the subsidiary’s statements if the difference in fiscal periods is:
Changes in payment procedures or changes in the definition of payment date for coding purposes may or may not affect loss reserve developments.
The ten largest companies account for what percent of life insurance sales in Canada?
What is made on an instrument-by-instrument basis, generally when an instrument is initially recognized in the financial statements?
______ is used when the rates for large or usual risks are established almost entirely by the skill and experience of the rate maker.
The highest and best use of the asset is ______________, if the asset would provide maximum value to market participants principally on the standalone basis.
In which premium income less return premiums arising from policies issued by the entity collecting the premiums and acting as the primary insurance carrier?
Valuation technique should be used to measure fair value and is consistent with:
A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.
Which of the following may NOT involve a high degree of management judgment and subjectivity and may present risks of material misstatement due to fraud?
Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.
SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measurement of the ability to pay claims in the future.
Which are the types of misstatements relevant to the auditor’s consideration of fraud in a financial statement audit?
Sales of securities are recorded as of the trade date. A receivable due from the broker is established in instances when a security has been sold, but the proceeds from the sale have not been received. Receivable for securities not received within settlement date are non-admitted, and are classified as other than invested assets.
TESTED 02 May 2024
