Financial SOFA-CFE Exam (page: 9)
Financial Certified iner
Updated on: 25-Dec-2025

Viewing Page 9 of 53

A ____________ places the occurrence of the loss in one policy period even if the occurrence of the damage spanned a larger period of time.

  1. event occurrence
  2. deemer clause
  3. manifestation
  4. double trigger

Answer(s): B



The trigger is the assertion of a claim rather than the occurrence of the injury.

  1. true
  2. False

Answer(s): A



Transaction Code, Class of Risk, Line of Business, and Policy Expiration Date are all claim data elements of a company's:

  1. operational plan
  2. Transaction cycle
  3. Data maintenance
  4. statistical plan

Answer(s): D



In the case of an advance or partial payment, the loss reserve should not be adjusted to zero, but in cases of final payment, the loss reserve is adjusted to zero.

  1. True
  2. False

Answer(s): A



What is used as the control for the company's financial information?

  1. General Ledger
  2. Balance sheet
  3. Financial statement
  4. Accounting cycle

Answer(s): A



The accrual or reserve for anticipated salvage and subrogation receipts would be recorded in which account?

  1. draft register reserve
  2. debt-first reserve
  3. contra-liability loss reserve
  4. unstructured reserve

Answer(s): C



What is a negotiable instrument that is accepted by the bank only upon the approval of the payor?

  1. cash flow
  2. draft
  3. check
  4. wire transfer

Answer(s): B



When the draft is received for acceptance from the bank, the liability that is debited and funds are transferred from the company's operating cash account to the bank is called:

  1. draft payable
  2. draft receivable
  3. internal signature cards
  4. transferring debts

Answer(s): A



Viewing Page 9 of 53



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