Most Recent SOFE AFE Exam Questions & Answers

Prepare for the SOFE Accredited Financial iner exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the SOFE AFE exam and achieve success.

The questions for AFE were last updated on Nov 22, 2024.

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Question No. 1

An estimate due to time lags in the receipt of reports from cendants is called reinsurance.

ATrue

BFalse

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Correct Answer: A

Question No. 2

Tax Act states that:

AA life insurer is subject to an investment income tax of 15 percent on its 'net Canadian life investment income

BA life insurer is subject to an investment income tax of 25 percent on its 'net Canadian life investment income

CA life insurer is subject to an investment income tax of 35 percent on its 'net Canadian life investment income

DA life insurer is subject to an investment income tax of 45 percent on its 'net Canadian life investment income

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Correct Answer: A

Question No. 3

Insurers issuing participating policies sometimes incur dividends which have been earned but which have not been disbursed or otherwise credited as of the financial statement date. Such dividends represent a due and unpaid liability amount. Reasons why dividends may be due and unpaid include all of the following EXCEPT:

APremium payment transactions not recorded within the last processing cycle for the reporting period.

BAll premiums paid to the anniversary date

CThe policy anniversary date is near the end of the calendar year and the policyholder has elected to receive dividends in cash, but the cash dividend has not yet been disbursed

DThe policy anniversary date is near the end of the calendar year and the policyholder has elected to have the dividend reduce the premiums, but the premium for the next policy year has not yet been received

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Correct Answer: B

Question No. 4

Interest rates are a key element of any option pricing exercise because cash flows are discounted at interest.

ATrue

BFalse

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Correct Answer: B

Question No. 5

agreements may contain par cap provisions that could significantly alter the economics of the transactions.

AYield-maintenance

BPrice-cap

CFixed-coupon

DAccounting

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Correct Answer: A

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