Pass the SOFE AFE Designation AFE Questions and answers with CertsForce

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Viewing questions 61-70 out of questions
Questions # 61:

The Appointed Actuary has a responsibility to express an opinion on the appropriateness of certain actuarially determined amounts in the financial statements.

Options:

A.

True


B.

False


Expert Solution
Questions # 62:

_______ include financial statements and notes, both on a consolidated and non consolidated basis.

Options:

A.

The annual Return


B.

Provincial Adequacy Return


C.

Constraints of self assessment


D.

Static Capital Adequacy Test


Expert Solution
Questions # 63:

What are batched, and input control totals are established before delivery to data entry?

Options:

A.

Coded applications


B.

Billing premiums


C.

Issuing policies


D.

Business applications


Expert Solution
Questions # 64:

The Annual Statement reporting requirements for the participating and nonparticipating branches is limited to major and secondary lines of business, but a company would:

Options:

A.

Usually carry this separation throughout all of its premium classifications


B.

Do not carry this separation throughout all of its premium classifications


Expert Solution
Questions # 65:

Immunization theory says that:

Options:

A.

duration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously.


B.

Investment matching requires rebalancing the liabilities portfolio, but the theoretically correct answer is to rebalance annually.


C.

Performance matching requires rebalancing the expense portfolio, but the theoretically correct answer is to rebalance continuously as and when needed only.


D.

Balance matching requires rebalancing the revenues portfolio, but the theoretically correct answer is to rebalance continuously.


Expert Solution
Questions # 66:

The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.

Options:

A.

True


B.

False


Expert Solution
Questions # 67:

The amount that currently would be required to replace the service capacity of an asset is called:

Options:

A.

Risk approach


B.

Market approach


C.

Income approach


D.

Cost approach


Expert Solution
Questions # 68:

An annuity contract provides:

Options:

A.

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a minimum guaranteed amount for those annuities not having life contingencies


B.

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a minimum guaranteed amount for those annuities involving life contingencies


C.

Either immediately or at some future date, perpetual income payments to one or more persons, perhaps with a certain guaranteed number of payments or with a maximum guaranteed amount for those annuities involving life contingencies


D.

Either immediately or at some future date, periodic income payments to one or more persons, perhaps with a certain small number of payments


Expert Solution
Questions # 69:

From what the most direct value-based requirements arise which are present in account value accumulation products?

Options:

A.

profit margins


B.

policy holding rates


C.

implicit interest rates


D.

withdrawal provisions


Expert Solution
Questions # 70:

Short-term portfolios are:

Options:

A.

Portfolios consisting of liabilities with maturities of one year to meet dollar needs.


B.

Portfolios consisting of combined revenues of less than one year to meet liquidity needs.


C.

Portfolios consisting of assets with maturities of less than one year to meet liquidity needs.


D.

Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs.


Expert Solution
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