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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.

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Total 286 questions

What give the issuer the right to retire the bond at certain times, typically if prevailing market interest rates fall below the rate on the bond?

A.

Call options

B.

Prepayment provisions

C.

Variable income statements

D.

Investments modules

Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

A.

an economic hedge between a decline in market price and security

B.

a decrease in yield on the underlying risk security

C.

Both A & B

D.

Neither A nor B

In _______________, an adjustment is based on experience of an individual risk during the term of the policy and is generally subject to maximum and minimum premium limits specified in the policy.

A.

Business recordkeeping

B.

Retrospective premium adjustments

C.

Premium transaction flow

D.

Adjusting premiums

The highest and best use of the asset is ______________, if the asset would provide maximum value to market participants principally on the standalone basis.

A.

in-exchange

B.

in-use

C.

in-market

D.

in-sale

What funnels premium dollars into separate accounts which means segregated pools of bonds or stocks?

A.

Variable life insurance

B.

Periodic life insurance

C.

Insurance plan

D.

Isolated Interest rate

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Total 286 questions
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