AFE

Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:A . Property and expense insurance organizationsB . Feasibility and performance assurance organizationsC . Property and liability insurance organizationsD . Building and asset related organizationsView AnswerAnswer: C

Which of the following is Correct?A . the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.B . the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected...

Which of the following may NOT involve a high degree of management judgment and subjectivity and may present risks of material misstatement due to fraud?A . InvestmentsB . Deferred acquisition costsC . ReinsuranceD . key estimatesView AnswerAnswer: D

When premium income less return premiums arising from policies issued or other contracts entered into reinsure other insurance entities that provide the related primary coverage are called:A . Indirect premiumsB . Direct premiumsC . Assumed reinsurance premiumsD . Real reinsurance premiumsView AnswerAnswer: C

Which counterparts of duration and convexity are the first- and second order sensitivities of an equity market instrument to changes in the price of the underlying?A . Delta and gammaB . Gamma and thetaC . Theta and rhoD . Alpha and VegaView AnswerAnswer: A

The auditor responds to risks of material misstatements due to fraud in which of the following ways?A . a response that has an overall effect on how the audit is conductedB . a response to identified risks involving the nature, timing and extent of auditing procedures to be performedC ....

A change in _______ or its application is appropriate if the change results in a measurement that is equally or more representative of fair value in the circumstances.A . Valuation techniqueB . Value techniqueC . Investment approachD . Accounting correctionsView AnswerAnswer: A

The difference between the carrying value of the parent’s investment in subsidiary and the amount received is treated as a gain or loss in the:A . parent’s income statementB . subsidiary’s revenue statementC . parent’s financial statementD . subsidiary’s income statementView AnswerAnswer: A

The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity’s investment and finance committees.A . TrueB . FalseView AnswerAnswer: A

In determining whether an operation is self-sustaining or integrated, what you do not need to consider is:A . source of financingB . nature of outputsC . price driversD . location of the marketView AnswerAnswer: B