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SOFE Accredited Financial Examiner AFE Question # 1 Topic 1 Discussion

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SOFE Accredited Financial Examiner AFE Question # 1 Topic 1 Discussion

AFE Exam Topic 1 Question 1 Discussion:
Question #: 1
Topic #: 1

With traditional whole life insurance:
A.

an interest rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance

B.

an expense rate on reserves is explicit on the premium rate and is locked in at time of policy issuance

C.

an interest rate on reserves is implicit in the premium rate and is locked in at time of policy issuance

D.

a debt rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance

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Actual exam question for SOFE AFE exam by Blaise71165 at Aug 3, 2025, 12:00:00 AM

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