SOFE Accredited Financial Examiner AFE Exam Practice Test

Which projection method uses paid losses plus reserves on outstanding claims?

Duration is a measure of the first-order interest rate sensitivity of a financial instrument.

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

The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each $l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon amount due at maturity.

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

For immediate annuities, this is the , defined by the sequence of periodic annuity benefit payments the policyholder is promised.

With which standard, the auditor's substantive procedures must include reconciling the financial statements to the accounting records and should include examining material adjustments made during the course of preparing the financial statements.