Effective Study Techniques for the SOFE AFE Exam

Company can periodically audit the servicer’s records and files pertaining to the loans owned by the company. In lieu of making the audit, the company can agree to receive an annual audit report pertaining to its loans from the servicer’s independent certified public accountants. This is the single audit concept

Servicer should not have a fidelity bond and an errors and omission policy of stipulated minimum amounts

Servicer must have a fidelity bond and an errors and omission policy of stipulated minimum amounts

Servicer must have an annual independent audit, with a copy of the audited financial statements sent to the company within a certain period of time after the end of the servicer’s fiscal year

a field work

an appraisal of risk subject to appropriate supervision

approval by entity’s claims department

All of the above

Usually carry this separation throughout all of its premium classifications

Do not carry this separation throughout all of its premium classifications

Prioritized investment

Reinsurance

Profit

Securitization.

Appraisal-term acts

Variable-term portfolio

Fixed-term portfolio

Revenue-earned portfolio

Credited life insurance

Periodic life insurance

Premium life insurance

Universal life insurance

the general administrative costs of insurers include components that do not necessarily vary with the level of the equity markets

the general administrative costs of investors include components that must necessarily vary with the level of the equity markets

the particular administrative costs of insurers include components that must necessarily vary with the level of the equity markets

the general administrative costs of investors include components that do not vary with the level of the equity markets

Variable annuities

Deferred annuities

Immediate annuities

None of the above

Are also an asset in statutory accounting

Are usually those past the due date but in the grace period

Accounting is similar to that for deferred premiums in that only the net premiums are necessary to match the reserve liability

Only A and B

employee pools

claim-serving pools

singular entity pools

None of the above