SOFE
AFE
Q1:
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is called:
○
A
face value○
B
fair value○
C
market value○
D
transaction value
SOFE
AFE
Q2:
What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before a particular date?
○
A
Independent claim adjustment○
B
Payment of claims○
C
Insured claim adjustments○
D
Claim adjustment expenses
SOFE
AFE
Q3:
Which of the following is Correct?
○
A
the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.○
B
the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.○
C
the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.○
D
the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.
SOFE
AFE
Q4:
An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may be a receivable for additional premiums.
○
A
True○
B
False
SOFE
AFE
Q5:
A lower net retention level typically would translate into a higher v\variability of reserves.
○
A
True○
B
False