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Financial CFE Exam (page: 4)
Financial Certified Examiner (CFE)
Updated on: 12-Feb-2026

Viewing Page 4 of 85
CFE PDF 416 Questions

The asset classification of funds held by or deposited with reinsured companies occurs when:

  1. the reporting entity has assumed insurance from only one insurer that owes it funds, according to the payment agreement.
  2. the reporting entity has assumed reinsurance from one or more other insurers that owe it funds, according to the reinsurance agreement.
  3. the reporting entity has assumed reinsurance necessarily from more then one insurers that owe it funds, according to the interest charges.
  4. the reporting entity has assumed authority from one or more other insurers that owe it funds, according to the deposited funds.

Answer(s): B



Which payments reflect the amount of reinsurance recoverable from reinsurers based upon the amounts paid by the ceding company under reinsured policies?

  1. loss adjustment expense
  2. premium expense
  3. payment assessment expense
  4. All of the above

Answer(s): A



Admissibility test must be applied to determine the amount of deferred tax asset (DTAs) that can be admitted is called:

  1. Maximum DTA
  2. Minimum DTA
  3. Net DTA
  4. Gross DTA

Answer(s): D



Which software must be established as a non-admitted asset and written off over a period not to exceed the lesser of the useful life of the software or five years.

  1. Non-reliable system
  2. Non-secure system
  3. Non-operating system
  4. Non-expensed system

Answer(s): C



Income earned as of the reporting date but not legally due to be paid to the reporting entity until subsequent to the reporting date is known as:

  1. Investment income accrued
  2. Interest income
  3. Real state income
  4. Investment income depreciated

Answer(s): A



Viewing Page 4 of 85



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