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.
Permanent stockholders’ equity represents an outside claim (from the permanent stockholders’ perspective) on the net assets of a subsidiary.
Generally, Participation income is an income stream due the company and is based upon the financial results of the borrower and/or borrowing business entity. Although it can take several forms, the more prominent ones are:
Generally, residential loans are open to prepayment at any time without penalty. To protect against a deficiency, mortgage loans should not exceed the market value of the mortgaged property and in fact are usually made for:
As defined in Accounting Standards Codification, dollar purchase agreements are the agreements to sell and repurchase similar and identical securities.
Tax Act states that:
The financial statements of which accounts maintained by insurance company that must be presented separately from the insurance company’s general account business?
Which of the following in NOT the flow of transaction through the claims cycle?
A lower net retention level typically would translate into a higher v\variability of reserves.
What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?
The sum of values assigned by claims adjusters to specific known claims that were recorded by the insurance entity but not yet paid at the financial statement date is called:
The Annual Statement reporting requirements for the participating and nonparticipating branches is limited to major and secondary lines of business, but a company would:
When securities repurchased under repos commonly have a principal amount that differs from principal amount of the security originally sold under the agreement, is known as:
Which of the following is the significant requirement for ongoing regulatory reporting to the Office of the Superintendent of Financial Institutions (“OSFI”)?
It refers to items such as interest paid on proceeds from the date due to the date actually disbursed, and to interest on premium deposit funds. These interest items are reflected by the increase in reserves or liability, from one year to the next. What is it?
Claims adjusting involve:
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.
Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:
An instrument that grants the holder the right but not the obligation to buy the underlying asset at a specified strike price is known as:
Reporting investments, set requirements regarding matters such as location of asset and set limitations on investing in future are all prescribed by a method called:
The agents submit to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is an account current of:
