Financial Certified iner SOFA-CFE Exam Questions in PDF

Free Financial SOFA-CFE Dumps Questions (page: 4)

At any time during the policy period, the earned premium plus the unearned premium for a policy equals its:

  1. written premium
  2. oral premium
  3. total premium
  4. defined premium

Answer(s): A



The amounts charged the insureds (the policyholders) for insurance coverage are called:

  1. written premium
  2. direct written premium
  3. total premium
  4. defined premium

Answer(s): A



What is not related to premiums paid to or received from another insurance company, either a company to whom reinsurance is ceded or a company from whom reinsurance is assumed?

  1. written premium
  2. direct written premium
  3. total premium
  4. net written premium

Answer(s): B



Those premiums arising from policies that an insurer transfers, in part or in whole (as the ceding company or reinsured), to another insurance company are called:

  1. transferred premiums
  2. purchase premiums
  3. reserved premiums
  4. ceded reinsurance premiums

Answer(s): D



____________________ are those premiums arising from policies which an insurer accepts, in part or in whole (as the reinsurer), from another insurance company.

  1. Assumed reinsurance premiums
  2. Unearned premiums
  3. Mortgage Insurance premiums
  4. Minimum reserve premiums

Answer(s): A



Gross written premiums are:

  1. written premiums plus net written premiums
  2. indirect written premiums plus direct written premiums
  3. direct written premiums plus assumed reinsurance premiums
  4. direct written premiums plus ceded reinsurance premiums

Answer(s): C



Net written premiums are:

  1. direct written premiums plus mortgage reinsurance premiums, minus ceded reinsurance premiums
  2. direct written premiums plus assumed reinsurance premiums, minus ceded reinsurance premiums
  3. written premiums plus insurance premiums, minus ceded reinsurance premiums
  4. assumed reinsurance premiums plus credit life insurance premiums, minus depreciated reinsurance premiums

Answer(s): B



Which of the following is the correct formula to calculate the unearned premium?

  1. Unearned premium = (Policy premium x Unexpired coverage days) / Total number of days in the policy
  2. Unearned premium = (Interest premium x expired coverage days) / Total number of days in the policy
  3. Unearned premium = (Insurance contracts x Reserve coverage days) / Total number of days in the policy
  4. Unearned premium = (Overhead premium x Unexpired coverage days) / Total number of days in the policy

Answer(s): A



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