Financial Certified Examiner (CFE) CFE Exam Questions in PDF

Free Financial CFE Dumps Questions (page: 9)

The in-force method requires the computation of which premium charges?

  1. for the amount charged the insured
  2. for the in-force premiums
  3. both A and B
  4. Neither A nor B

Answer(s): C



Under which method of calculating unearned premium reserves, the amortization procedure uses the written premiums for the full term of the policy, or for any additional premium paid.

  1. Direct
  2. Indirect
  3. In-force
  4. Effective data-recovery

Answer(s): A



Under audit-type policies, the actual amount of the in-force premium is not known at the inception of the policy.

  1. True
  2. False

Answer(s): A



What requires that the retrospective rated premiums reserve be calculated for each individual risk by applying the appropriate retrospective rating formula to each plan?

  1. Accuracy method
  2. inventory method
  3. Audit premium
  4. Endorsement

Answer(s): B



The projection method is not totally accurate in developing the unearned premium reserve, it provides the best estimate based on prior experience and adjusted for current activities.

  1. True
  2. False

Answer(s): A



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7/31/2023 10:42:00 PM

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