AFE SOFE Accredited Financial Examiner Free Practice Exam Questions (2025 Updated)
Prepare effectively for your SOFE AFE Accredited Financial Examiner certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before a particular date?
Prepayment of a conventional mortgage loan, prior to its specified maturity, is discouraged through the general market acceptance of significant prepayment penalties. Often these penalties are calculated so that when prevailing market interest rates are:
Scope of Examination and Report of Independent Certified Public Accountant states that:
A company that has its loans serviced, for whatever reason, is usually charged a servicer’s fee. This fee is usually expressed:
For reinsurance assumed, the concepts analogous to attachment points and limits are referred to as
Which are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance?
At the end of each reporting period, unearned premiums are calculated and the change in unearned premiums is recorded as a change or debit to premium income.
In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract may be extended upon mutual agreement of the buyer-lender and seller-borrower.
Insurance policies may be classified in which of the following categories?
Which of the following is NOT of equity market sensitivities that are usually considered in dynamic hedging?
Which of the following id NOT the kind of Insurance?
________________ is an agreement between two counterparties to enter into a particular transaction at a specified date in the future at an agreed-upon price.
An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may be a receivable for additional premiums.
Which of the following is NOT the Asset/ Liability Management (ALM) activity?
Adjusting and Others (AO) reserves are often provided for by using the calendar year paid-to-paid method rather than the accident year paid-to-paid method used for Inflation in Defense & Cost Containment (DCC) reserves.
National Association of Insurance Commissioners stated that, has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.
All operations under common control are combined, intercompany balances and transactions are eliminated and the effects of minority interests are recorded through:
_______________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.
It indicates the lender’s commitment to make a loan in accordance with the terms specified either in the borrower’s loan application or in the terms the company approves for the loan.
What of a life insurer’s is determined by applying factors for risk components to specific on and off-balance sheet assets or liabilities and by adding the results?
