Effective Study Techniques for the SOFE AFE Exam

Supplying the Investment Department with correct data and reports that summarize all loan transactions

Alerting the Investment Department promptly whenever an exception to the normal processing routine occurs

The design, maintenance, and accuracy of accounting records, for periodic management and exception reports, and for statutory statement preparation

Its records may or may not provide the needed data to support this reporting function

Conventional Residential Loan

FHA loan

Wrap-around loan

VA loan

the process of controlling the impact of risk related events on a company

the process of planning the processes in order to avoid risk related events to a company

the process of designing the models to avoid risk related events on a company

All of the above

Quick-tail lines

Single-tail lines

Acceptance-tail lines

Short-tail lines

Feasible financial price

Asset/Liability price

Principal price

Exchange price

evaluate the design of controls not relevant to audit of financial statement

determine whether design of controls have been implemented

Both A & B

Neither A nor B

duplication of branch records

maintenance of detailed entries for analytical purposes

use of planning procedures from main office for both premiums and cash

All of the above

Economic flow

Nominal flows

Discount rates

Inflation effect

Reinsurance

Syndication

Consortium act

Risk Diffusion

legal right of the distributer to recover from vendors who may be wholly responsible for the loss paid under the terms of the agreement.

legal right of the insurer to recover from a third party who may be wholly or partly responsible for the loss paid under the terms of the policy.

legal right of the claimer to recover from the organization that may be wholly or partly responsible for the loss paid under the terms of the company’s policy.

legal right of the business to recover from a third party who may be wholly responsible for the loss paid under the terms of the policy.