Financial Statements provide additional valuable information on the loans. Some of the more significant information provided includes EXCEPT:
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:
In _______________, an adjustment is based on experience of an individual risk during the term of the policy and is generally subject to maximum and minimum premium limits specified in the policy.
What seeks to identify and exploit existing or potential synergies in a company’s diverse business activities?
The nature and extent of interest rate risk, credit risk, reinsurance risk and other significant risks should be disclosed is required for:
Subsequent to the funding of a loan, the most common document/s obtained is/are:
Prepayment of a conventional mortgage loan, prior to its specified maturity, is discouraged through the general market acceptance of significant prepayment penalties. Often these penalties are calculated so that when prevailing market interest rates are:
Schedule H retains the identity of the Group Accident and Health and the Credit Accident and Health lines of business. However, in Schedule H the line of business designated as Other Accident and Health is subdivided to identify individual policies or elective options. Which of the following is/are out of those classifications?
The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.
What features a reserve that accumulates at company declared credited interest rates, which are periodically reset?
Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:
Most life insurance companies that are taxable in Canada fall into which one of the following classifications:
A change in _______ or its application is appropriate if the change results in a measurement that is equally or more representative of fair value in the circumstances.
The maximum error in the population that the auditor is willing to accept is called:
These are securities whose underlying assets consist of commercial mortgage loans. The commercial loans are pooled, which brings diversification and liquidity to the asset class.
What are these?
According to Securities and Exchange Commission (SEC), “the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise” is called:
Admitted assets are those specifically prescribed by the NAIC Accounting Practices and Procedures Manual or prescribed or permitted by the various jurisdictions. An admitted asset is defined as having probable future economic benefits. It also has three essential characteristics. Which one of the following is out of those characteristics?
Which risk assessment procedures are used to obtain an understanding of the entity and its environment, including its internal control?
Changes in existing policies that may result in additional premiums or return premiums, such as increases or decreases in coverage limits, in:
What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?
Which of the following is NOT of equity market sensitivities that are usually considered in dynamic hedging?
It indicates the lender’s commitment to make a loan in accordance with the terms specified either in the borrower’s loan application or in the terms the company approves for the loan.
National Association of Insurance Commissioners stated that, has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.
A lower net retention level typically would translate into a higher v\variability of reserves.
Which control includes the procedures for system design, including the acquisition of software packages, should encourage active participation by the accounting department and internal auditors?
The profitability of an insurance entity on a statutory basis is generally gauged by:
A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.
A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.
When premium income less return premiums arising from policies issued or other contracts entered into reinsure other insurance entities that provide the related primary coverage are called:
To meet informational demands, internal management reporting will entail alternate views of the organization’s financial performance. These areas, or views, are including all of the following EXCEPT:
Cash does include funds in transit, unless the deposit was prepared and sent to the bank. If the deposit was sent to the bank, it is considered cash and entered into the company’s books and is no longer in transit. Funds in transit not yet sent to the bank are entered:
Loans on policies are valuable to the policyholders, and insurers encourage them to protect this feature by saving it for emergency use. There are two basic types of loans. In case of conventional premium loans:
TESTED 03 May 2024
