SOFE AFE.pdf
Q: 1
Generally, residential loans are open to prepayment at any time without penalty. To protect against a
deficiency, mortgage loans should not exceed the market value of the mortgaged property and in fact
are usually made for:
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Q: 2
Scope of Examination and Report of Independent Certified Public Accountant states that:
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Q: 3
Special surplus funds are portions of surplus allocated or appropriated for a specific purpose. Special
surplus funds usually are allocated voluntarily but also may be required by an insurance regulator.
Which one the following is NOT an example of special funds:
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Q: 4
For Generally Accepted Accounting Principles (GAAP), the four methods for reporting the results of
operations and financial position of a subsidiary (investee) by a parent (investor) are:
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Q: 5
What are batched, and input control totals are established before delivery to data entry?
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Q: 6
An entity’s practices concerning loss settlement, such as a practice of vigorously defending suits or of
quickly settling suits, can have a significant effect on an entity’s loss experience.
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Q: 7
Extrapolation of historical dollars, projection of separate frequency data, use of expected loss ratios
are all projection methods for:
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Q: 8
Which projection method uses paid losses plus reserves on outstanding claims?
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Q: 9
A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or
commodity at a specified future date at a specified price is called:
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Q: 10
Federal Housing Administration:
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Question 1 of 10
