SOFE Certified Financial Examiner SOFA-CFE Exam Questions

An agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor is called:

What needs to understand and assess this environment and the system of internal controls so it can exercise effective oversight?

At any time during the policy period, the earned premium plus the unearned premium for a policy equals its:

A combined ratio under 100 percent reflects an underwriting profit, with a combined ratio above 100 percent reflecting an underwriting loss.

What provides that the reinsurer assumes an agreed percentage of each risk being insured, sharing all premiums and losses accordingly with the reinsured?

The projection method is not totally accurate in developing the unearned premium reserve, it provides the best estimate based on prior experience and adjusted for current activities.

In estimating loss and loss adjustment expense, the actuary attempts to group claims into: