Financial Accredited Examiner (AFE) AFE Exam Questions in PDF

To realize the effect on the "bottom line, " or the net gain from operations, from various transactions, one must consider the amount of any liabilities that are released because of the transaction. Assume a death claim entry as follows:
Death proceeds-ordinary $10, 000
Dividends on deposit disbursed 1, 000
Cash $11, 000
On first appearance, one might think that this will cause the net gain from operations to be $11, 000 lower. However, if the policy has a reserve of $3, 000, the effect on the net gain is only ______________ , because the reserve liability of $3, 000 and the dividend liability of $1, 000 will no longer be shown on the balance sheet

An annuity contract provides:

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?

To meet informational demands, internal management reporting will entail alternate views of the organization's financial performance. These areas, or views, are including all of the following EXCEPT:

A stock life insurance company writing both participating and nonparticipating business must follow special accounting procedures under the laws of certain jurisdictions. The purpose of these special accounting procedures is to provide for:

Schedule H retains the identity of the Group Accident and Health and the Credit Accident and Health lines of business. However, in Schedule H the line of business designated as Other Accident and Health is subdivided to identify individual policies or elective options. Which of the following is/are out of those classifications?

The Annual Statement reporting requirements for the participating and nonparticipating branches is limited to major and secondary lines of business, but a company would:

GAAP have two important functions. First, they provide a set of standards that endeavor to measure with reasonable accuracy the assets held, liabilities owed, revenue earned, and expenses incurred by the company. For life insurance companies these measurement rules have been prescribed specifically for their specialized products. The second important function of GAAP is: