Latest SOFE-AFE Practice Tests with Actual Questions

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SOFE-AFE

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Question: 69

There are many different sources of CMBS. Conduits and aggregate pools generally consist of loans newly originated, purchased or held by investment bankers until the pool is large enough for an efficient execution. Government agencies such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corp. (FHLMC) are important sources of:

financing. mmercial financing.

tgage loans

r: A

on: 70

epresent the ownership interests in the net assets of the subsidiary held by persons outside the controllin structure?

rnal control ority interests

manent stockholder of the above

r: B

on: 71

antial investment is defined as any investment comprising more than 15 percent of an enterprise’s votin ter than 35 percent of its equity.

1. Residential financing

2. B2B

3. Co

4. Mor

Answe

Questi

What r g

entities’

1. Exte

2. Min

3. Per

4. None

Answe

Questi

A subst g shares

or grea

1. True

2. False

Answer: B

Question: 72

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

1. Variable annuities

2. Deferred annuities

3. Immediate annuities

4. None of the above

Answer: B

Question: 73

The value of the capital stock shown in the stock life insurance company’s statutory basis balance sheet equals the par value per share multiplied by the number of issued shares.

In the case of no-par stock:

1. The stated value per share is used (or liquidation value, for no-par preferred capital stock)

2. The Total value of shares is used (or liquidation value, for par preferred capital stock)

   ital stock may be sold to the public for an amount greater than par or stated value

   
   

   r: A

   
   

   on: 74

   
   

   ng premiums less return premiums arising from reinsurance purchased from other insurance entities are called: ng premiums

   ct premiums

   umed reinsurance premiums ed reinsurance premiums

   
   

   r: D

   
   

   on: 75

   
   

   olicy periods expire, the premiums written are earned and are recognized as: ilities

   enses enues

   of the above

   
   

   r: C

3. The market value per share is used (or liquidation value, for no-par preferred capital stock)

4. Cap

Answe

Questi

Outgoi

1. Rati

2. Dire

3. Ass

4. Ced

Answe

Questi

When p

1. Liab

2. Exp

3. Rev

4. None

Answe

Question: 76

Which projection method uses paid losses plus reserves on outstanding claims?

1. Average losses

2. Loss ratio

3. Incurred loss

4. None of the above

Answer: C

Question: 77

The SEC rules clarify that management’s assessment and report is limited to internal control over financial reporting.

1. True

2. False

Answer: A

Question: 78

nd of the accumulation phase.

r: B

on: 79

isk consists of:

of material misstatement ction of risk

A & B

her A nor B

r: C

on: 80

red settlements are agreements characterized by the periodic payment of fixed amounts to a claimant in tion with the settlement of a legal claim. Such payments may last for the lifetime of the payee or they m articular period of time, depending upon the terms of the settlement.

ty responsible for making structured settlement payments may make payments: ctly

claimant

The magnitude of the variable annuity benefits provided by a deferred annuity depends on the size of the account value at the e

1. True

2. False

Answe

Questi

Audit r

1. Risk

2. dete

3. Both

4. Neit

Answe

Questi

Structu

connec ay be

for a p

The par

1. Dire

2. To a

3. Any one of these

4. None of these

Answer: C