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Accredited Financial Examiner

Last Update Nov 21, 2024
Total Questions : 286

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Accredited Financial Examiner Questions and Answers

Questions 1

Supplementary contracts may be issued by an insurer upon the termination of a life insurance contract that has been terminated by death, maturity, or surrender. The policyholder, if living or the beneficiary elects the option under which the proceeds are paid. The payment options usually available are:

Options:

A.

To receive a guaranteed fixed number of payments

B.

To receive payments of a certain amount until the proceeds are exhausted.

C.

To leave the proceeds with the insurer to earn interest with payment to be made at a later date.

D.

Any one out of these

Questions 2

What give the issuer the right to retire the bond at certain times, typically if prevailing market interest rates fall below the rate on the bond?

Options:

A.

Call options

B.

Prepayment provisions

C.

Variable income statements

D.

Investments modules

Questions 3

At the end of each reporting period, unearned premiums are calculated and the change in unearned premiums is recorded as a change or debit to premium income.

Options:

A.

True

B.

False

Next Question
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