SOFE AFE Exam Practice Test Instant Access

Question 1

For reinsurance assumed, the concepts analogous to attachment points and limits.

ASeverity Levels

BFrequency Levels

CPolicy levels

DRetention levels

Answer : D

Question 2

In processing , many entities keep a single file for each insured event, with separate identification of each claimant.

AInsurance claim

Btransaction cycle

CLiability claim

DCompensation period

Answer : C

Question 3

The organizations in which the ownership and control of operations are vested in the policyholders are known as:

APrivate entities

BPublic entities

CReciprocal entities

DMutual entities

Answer : D

Question 4

Insurance agents act as contractors in groups who express one or more entity with express authority to act for the entity in dealing with insureds.

ATrue

BFalse

Answer : B

Question 5

The ten largest companies account for what percent of life insurance sales in Canada?

Aless than 50 percent

Bmore than 65 percent

Cmore than 75 percent

Dless than 80 percent

Answer : C

Question 6

The date on which the contract becomes effective is known as _.

Apolicy date

Breport date

Creinsurance date

Drecord date

Answer : A

Question 7

Lines of insurance in which claims are settled relatively quickly are called:

AQuick-tail lines

BSingle-tail lines

CAcceptance-tail lines

DShort-tail lines

Answer : D

SOFE AFE Accredited Financial Examiner Exam Practice Test