Free IFPUG AFE Practice Test & Real Exam Questions
Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:
Correct Answer: B
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Asset/Liability Management recognizes that the financial impact of an asset or liability is mainly realized through its:
Correct Answer: B
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Which of the following in NOT the flow of transaction through the claims cycle?
Correct Answer: C
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Primary coverage involves policies written between an insurer and a customer directly.
Correct Answer: B
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Accounting for escrow funds is difficult because of the large number of transactions related to such funds. A separate bank account or a trust bank account may be opened, with all escrow receipts deposited into it to prevent:
Correct Answer: C
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It is defined as a debt restructuring whereby the insurer for economic or legal reasons related to borrower financial difficulties, grants a concession to the debtor that it would not otherwise grant.
Correct Answer: B
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What is made on an instrument-by-instrument basis, generally when an instrument is initially recognized in the financial statements?
Correct Answer: D
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Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:
Correct Answer: C
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What seeks to identify and exploit existing or potential synergies in a company's diverse business activities?
Correct Answer: C
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The deduction must be based on identification of specific doubtful amounts and is limited to the maximum of doubtful debts identified in the year or a preceding year and 75 percent of the amount reported for statutory purposes.
Correct Answer: A
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If claims have been reported to the insurer after the contract period, it may several months for the insurer to investigate and establish a case reserve for reported claims.
Correct Answer: A
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A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.
Correct Answer: B
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