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 AFE Dumps with Practice Exam Questions Answers

Questions: 286 questions

Last Update: Apr 20, 2024

SOFE Certification Exam AFE has been designed to measure your skills in handling the technical tasks mentioned in the certification syllabus

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AFE Questions and Answers

Question # 1

Financial Statements provide additional valuable information on the loans. Some of the more significant information provided includes EXCEPT:

A.

The valuation of the mortgage loan portfolio, including a description of the valuation basis for mortgage loans and income recognition

B.

The recorded investment and interest past due on mortgages with interest more than 90 days past due

C.

The recorded investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced

D.

Disclosures of impaired loans: The total recorded investment in impaired loans at the end of each period

Question # 2

When a retained asset account is established in the place of a cash settlement, an interest bearing account is created by the insurer for the beneficiary. The beneficiary receives a checkbook with which to draw upon funds in the new account. The account holder can make:

A.

Partial or total withdrawal of the account balance as needed and has total control over the account

B.

Partial withdrawal of the account balance as needed and has total control over the account

C.

Total withdrawal of the account balance as needed and has total control over the account

D.

25% withdrawal of the account balance as needed and has total control over the account.

Question # 3

Principal objectives of state statutes are: to investigate and settle some or all of the

A.

restrict investments of insurance entities

B.

prescribe methods of admitted asset recovery

C.

acquisition of risk-based capitals

D.

Both B & C

Question # 4

Which risk assessment procedures are used to obtain an understanding of the entity and its environment, including its internal control?

A.

Inquiries of management

B.

Analytical procedures

C.

Observation

D.

All of the above

Question # 5

Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

A.

an economic hedge between a decline in market price and security

B.

a decrease in yield on the underlying risk security

C.

Both A & B

D.

Neither A nor B