Question 1

The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract:

Accepted Answer

A)  transfer only significant timing risk 
B)  transfer only significant underwriting risk 
C)  transfer neither significant timing nor underwriting risk 
D)  All of the above 
A)  transfer only significant timing risk 
B)  transfer only significant underwriting risk 
C)  transfer neither significant timing nor underwriting risk 
D)  All of the above

Question 2

In which of the following accounts the trading charges are high?

Accepted Answer

A)  Savings account 
B)  System account 
C)  Personal account 
D)  Cash account 
A)  Savings account 
B)  System account 
C)  Personal account 
D)  Cash account

Question 3

Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional capital.

Accepted Answer

A)  Secondary Offering 
B)  IPO 
C)  Private Placement 
D)  Preferred Offering 
A)  Secondary Offering 
B)  IPO 
C)  Private Placement 
D)  Preferred Offering

Question 4

The trustee is responsible for producing a schedule of distribution which includes information as:

Accepted Answer

A)  Assets and their current fair market value 
B)  The method of distribution 
C)  Each beneficiary's share of assets and the trust's liability 
D)  All of these 
A)  Assets and their current fair market value 
B)  The method of distribution 
C)  Each beneficiary's share of assets and the trust's liability 
D)  All of these

Question 5

___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to maintain the purchasing power of their investment. In other words, the return needs to be no less than the rate of inflation.

Accepted Answer

A)  Capital preservation 
B)  Capital appreciation 
C)  Capital depreciation 
D)  Capita budgeting 
A)  Capital preservation 
B)  Capital appreciation 
C)  Capital depreciation 
D)  Capita budgeting

Question 6

Of the following statement identify the advantages of market measures to the investor?

Accepted Answer

A)  These measures identify the population to be measured and its methods 
B)  These measures offer equivalents of common sizes and metric units 
C)  These measures regulates the access to and cost of imports and exports 
D)  These measures quickly judge the overall portfolio performance 
A)  These measures identify the population to be measured and its methods 
B)  These measures offer equivalents of common sizes and metric units 
C)  These measures regulates the access to and cost of imports and exports 
D)  These measures quickly judge the overall portfolio performance

Question 7

____________ is a hybrid form of HMO that allows members to go outside the HMO network for care and reimburses them at a specified percentage of the cost.

Accepted Answer

A)  Individual practice association 
B)  Preferred provider organization 
C)  Exclusive provider organization 
D)  Point-of-service plan 
A)  Individual practice association 
B)  Preferred provider organization 
C)  Exclusive provider organization 
D)  Point-of-service plan

Question 8

The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

Accepted Answer

A) True 
 B)False

Question 9

Whole life insurance is a life insurance designed to offer ongoing insurance coverage over the course of an insured's entire life. The noteworthy advantage of whole life insurance is:

Accepted Answer

A)  Premium payments contribute towards building an estate 
B)  One can budget premium payments for a long period 
C)  It's a low-load life insurance 
D)  These are sold only by agents 
A)  Premium payments contribute towards building an estate 
B)  One can budget premium payments for a long period 
C)  It's a low-load life insurance 
D)  These are sold only by agents

Question 10

When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deductible, this leads to the formation of:

Accepted Answer

A)  Portfolio 
B)  Claims 
C)  Captives 
D)  Fronting 
A)  Portfolio 
B)  Claims 
C)  Captives 
D)  Fronting

Question 11

Which of the following statements hold true for bid price?

Accepted Answer

A)  It is the price at which broker is willing to sell a certain security 
B)  It is the price at which investor can buy units from the funded company 
C)  It is the price asked by the seller of securities from buyers 
D)  It is the price at which broker is willing to buy a certain security 
A)  It is the price at which broker is willing to sell a certain security 
B)  It is the price at which investor can buy units from the funded company 
C)  It is the price asked by the seller of securities from buyers 
D)  It is the price at which broker is willing to buy a certain security

Question 12

Which of the following is NOT a test semi-strong from efficiency?

Accepted Answer

A)  Stock splits 
B)  Accounting changes 
C)  Dividend announcements 
D)  Insider transactions 
A)  Stock splits 
B)  Accounting changes 
C)  Dividend announcements 
D)  Insider transactions

Question 13

What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?

Accepted Answer

A)  Principle of cash value 
B)  Principle of indemnity 
C)  Right of subrogation 
D)  Co-insurance 
A)  Principle of cash value 
B)  Principle of indemnity 
C)  Right of subrogation 
D)  Co-insurance

Question 14

The APT was developed in 1976 by __________.

Accepted Answer

A)  Lintner 
B)  Modigliani and Miller 
C)  Ross 
D)  Sharpe 
A)  Lintner 
B)  Modigliani and Miller 
C)  Ross 
D)  Sharpe

Question 15

The duties of a guardian in guardianship arrangements are similar to those of a trustee. Specifically, the guardian is obligated to: 1) Protect and preserve the assets 2) Submit an inventory and appraisal to the court 3) Retain or divest assets 4) Use principal and income for the benefit of the ward 5) Submit an annual accounting to the court

Accepted Answer

A)  Only 1.3,4 
B)  All of these 
C)  Only 1, 2 
D)  All except 3 
A)  Only 1.3,4 
B)  All of these 
C)  Only 1, 2 
D)  All except 3

Question 16

If claims have been reported to the insurer after the contract period, it may several months for the insurer to investigate and establish a case reserve for reported claims.

Accepted Answer

A) True 
 B)False

Question 17

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

Accepted Answer

A)  Sales tax may be charged on the interest that you earn 
B)  You cannot earn interest until you pass your 18th birthday 
C)  Earnings from savings account interest may not be taxed 
D)  Income tax may be charged on the interest if your income is high enough 
A)  Sales tax may be charged on the interest that you earn 
B)  You cannot earn interest until you pass your 18th birthday 
C)  Earnings from savings account interest may not be taxed 
D)  Income tax may be charged on the interest if your income is high enough

Question 18

The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of its statutory financial statements, may include:

Accepted Answer

A)  the entity wishes to depart from Statutory Accounting Practices (SAP) 
B)  the prescribes SAP address the accounting for transaction 
C)  Both A & B 
D)  Neither A nor B 
A)  the entity wishes to depart from Statutory Accounting Practices (SAP) 
B)  the prescribes SAP address the accounting for transaction 
C)  Both A & B 
D)  Neither A nor B

Question 19

A participation or co-insurance clause stipulates that the company will pay some portion of the covered loss in excess of the deductible rather than the entire amount. How much portion of the covered loss may be paid by the company?

Accepted Answer

A)  60%-70% 
B)  70%- 90% 
C)  80%-90% 
D)  Any one of these 
A)  60%-70% 
B)  70%- 90% 
C)  80%-90% 
D)  Any one of these

Question 20

A broker is:

Accepted Answer

A)  Far more than a salesperson 
B)  Mostly interested in his own commission 
C)  May not be socially known 
D)  Can trade your stock without your permission 
A)  Far more than a salesperson 
B)  Mostly interested in his own commission 
C)  May not be socially known 
D)  Can trade your stock without your permission

The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract:

In which of the following accounts the trading charges are high?

Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional capital.

The trustee is responsible for producing a schedule of distribution which includes information as:

___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to maintain the purchasing power of their investment. In other words, the return needs to be no less than the rate of inflation.

Of the following statement identify the advantages of market measures to the investor?

____________ is a hybrid form of HMO that allows members to go outside the HMO network for care and reimburses them at a specified percentage of the cost.

The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

Whole life insurance is a life insurance designed to offer ongoing insurance coverage over the course of an insured's entire life. The noteworthy advantage of whole life insurance is:

When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deductible, this leads to the formation of:

Which of the following statements hold true for bid price?

Which of the following is NOT a test semi-strong from efficiency?

What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?

The APT was developed in 1976 by __________.

If claims have been reported to the insurer after the contract period, it may several months for the insurer to investigate and establish a case reserve for reported claims.

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of its statutory financial statements, may include:

A participation or co-insurance clause stipulates that the company will pay some portion of the covered loss in excess of the deductible rather than the entire amount. How much portion of the covered loss may be paid by the company?

A broker is:

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract:

In which of the following accounts the trading charges are high?

Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional capital.

The trustee is responsible for producing a schedule of distribution which includes information as:

___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to maintain the purchasing power of their investment. In other words, the return needs to be no less than the rate of inflation.

Of the following statement identify the advantages of market measures to the investor?

____________ is a hybrid form of HMO that allows members to go outside the HMO network for care and reimburses them at a specified percentage of the cost.

The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

Whole life insurance is a life insurance designed to offer ongoing insurance coverage over the course of an insured's entire life. The noteworthy advantage of whole life insurance is:

When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deductible, this leads to the formation of:

Which of the following statements hold true for bid price?

Which of the following is NOT a test semi-strong from efficiency?

What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?

The APT was developed in 1976 by __________.

If claims have been reported to the insurer after the contract period, it may several months for the insurer to investigate and establish a case reserve for reported claims.

If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account?

The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of its statutory financial statements, may include:

A participation or co-insurance clause stipulates that the company will pay some portion of the covered loss in excess of the deductible rather than the entire amount. How much portion of the covered loss may be paid by the company?

A broker is:

Certified Regulatory Compliance Manager

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