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Free AFE – Accredited Financial Examiner Practice Test Question

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Showing 13–15 of 15 questions

Question 13

In which plan all activities writing automobile insurance in a state are allocated a share of the involuntary business on an equitable basis?

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    Automobile equitability
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    Automobile insurance
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    Automobile assurance
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    None of the above
Question 14

What are designed primarily to accumulate a fund for eventual liquidation via annuitization, so the savings element is predominant?

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    Variable annuities
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    Deferred annuities
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    Immediate annuities
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    None of the above
Question 15

Which of the following is Correct?

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    the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.
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    the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.
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    the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.
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    the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.