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AFE Exam Dumps - Accredited Financial Examiner

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Question # 9

The Module Rule requires the insurer to provide:

A.

to the insurance commissioner of the state of domicile, a copy of notification of adverse financial condition

B.

to the auditor, evidence that the notification has been provided to the organization

C.

Both A & B

D.

Neither A nor B

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Question # 10

Inflation in Defense & Cost Containment (DCC) is evaluated separately and is estimated to occur at the same rate as the rate of inflation in the losses.

A.

True

B.

False

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Question # 11

What seeks to identify and exploit existing or potential synergies in a company’s diverse business activities?

A.

Appropriate business decisions

B.

Holistic techniques

C.

Collateral strategies

D.

Reimbursement activities

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Question # 12

The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

A.

True

B.

False

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Question # 13

Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:

A.

A tight asset/liability match

B.

A well-diversified core of investments

C.

A tight asset/liability match with a well-diversified core of investments.

D.

Real estate lending by insurance companies

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Question # 14

The estimated liability includes the amount of money that will be used for future payments of:

A.

Reported claims to insurer

B.

Claims related to insured events

C.

Claim adjustment expenses

D.

All of the above

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Question # 15

The combined ratio is the sum of it:

A.

loss ratio

B.

expense ratio

C.

dividend ratio

D.

All of the above

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Question # 16

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

A.

The annual Return

B.

Provincial Adequacy Return

C.

Constraints of self assessment

D.

Static Capital Adequacy Test

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