Effective Study Techniques for the SOFE AFE Exam

the insurer shall also require that the independent certified public accountant subject the data used by the appointed actuary to testing procedure.

the insurer shall also require that the group of certified public accountant subject the data used by the appointed actuary to planning procedure.

the investor shall also require that the independent certified private accountant subject the data used by the appointed actuary to developing procedure.

the investor shall also require that the independent certified public accountant subject the data used by the appointed actuary to maintaining procedure.

Feasible investment strategy

Design strategy

Risk strategy

Product risk strategy

Evaluating and acceptability of risk

Determining the premium

Evaluation of entity’s capacity to retain risk

All of the above

A tight asset/liability match

A well-diversified core of investments

A tight asset/liability match with a well-diversified core of investments.

Real estate lending by insurance companies

A procedure that grants the holder the right but not the obligations to buy the main asset at the specified market price.

A strategy that grants the holder the right to sell the underlying asset at the actual price.

An instrument that grants the holder the right but not the obligations to sell the underlying asset at the specified strike price.

An activity that grants the holder the right to put obligations to the underlying asset at the specified strike price.

case-basis reserves

computing reserves

aggregate reserves

None of the above

starts with a real standard, frequently the judgmental rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.

starts with an assumed standard, frequently the manual rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.

starts with an assumed standard, frequently the class rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.

starts with a real standard, frequently the individual rate, and adjusts such standard rates according to an evaluation of greater or lesser exposure to risk.

Inquiries of management

Analytical procedures

Observation

All of the above

Regulation of Insurer Financial Disclosure

Regulation of Insurer Investment Activity

Regulation of Insurer Reserve Adequacy

Regulation of Insurer Asset Adequacy

The valuation of the mortgage loan portfolio, including a description of the valuation basis for mortgage loans and income recognition

The recorded investment and interest past due on mortgages with interest more than 90 days past due

The recorded investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced

Disclosures of impaired loans: The total recorded investment in impaired loans at the end of each period