Financial Certified iner SOFA-CFE Dumps in PDF

Free Financial SOFA-CFE Real Questions (page: 6)

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



Which of the following is NOT the loss category?

  1. paid losses
  2. losses reserved for future payment
  3. losses incurred
  4. subsidiary losses

Answer(s): D



Which of the following is the loss characteristic?

  1. known vs. unknown
  2. reported vs. unreported
  3. short-tail vs. long-tail
  4. All of the above

Answer(s): D



The reserve for a reported claim that is established by an adjuster or a formula based on the company's loss experience is called:

  1. loss reserve
  2. case reserve
  3. adjustment reserve
  4. predefined reserve

Answer(s): B



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