Exam 1: Accredited Financial Examiner

Reduction for salvage is:

______ is used when the rates for large or usual risks are established almost entirely by the skill and experience of the rate maker.

What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?

What uses valuation techniques to convert future amounts to a single present amount?

The date on which the contract becomes effective is known as _.

Admitted assets are those specifically prescribed by the NAIC Accounting Practices and Procedures Manual or prescribed or permitted by the various jurisdictions. An admitted asset is defined as having probable future economic benefits. It also has three essential characteristics. Which one of the following is out of those characteristics?

Which risk assessment procedures are used to obtain an understanding of the entity and its environment, including its internal control?

The combined ratio is the sum of it:

Final approval should be obtained prior to placing a new system into operation is the activity that can be fall into which control?

Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:

Valuation technique should be used to measure fair value and is consistent with:

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?

An attitude that includes a questioning mind and a critical assessment of audit evidence is 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:

Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.

In which premium income less return premiums arising from policies issued by the entity collecting the premiums and acting as the primary insurance carrier?

agreements may contain par cap provisions that could significantly alter the economics of the transactions.

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.

Quantifies the sensitivity of the option price to changes in interest rates is known as:

_______ is contractual right of recovery that entitles the insurer to any proceeds from the disposal of damaged property for which the claim has been made.