SOFE-CFE Online Practice Questions and Answers

Which is the form usually used to fulfill annual reporting requirements under the Securities Exchange Act of 1934?

A. Form 10-K

B. Form 10-Q

C. Form 8-K

D. Form 8-Q

Which of the following is NOT the type of hotline?

A. Part-time hotline

B. Full-time hotline

C. Third-party hotline

D. Detective hotline

The role of which functions of an insurance company is to use and manage the funds generated in the other parts of the business to maximize the profitability of the entity as a whole?

A. cash and credit

B. investment and treasury

C. insurance and treasury

D. investment and revenues

Which is the risk that a security will decline in value over time?

A. Credit risk

B. Market risk

C. Commodity risk

D. Technology risk

Insurance protection sold by an insurer is described in a written agreement (contract) between an insurance company and the insured, called:

A. concurrence

B. statement

C. policy

D. Guideline

Which bonds have interest payment coupons attached, which are presented to the issuer to obtain payments of interest?

A. General

B. Discounted

C. Bearer

D. Nominal

The base period is defined as:

A. the most recent 20-calendar-month period ending before the ending of the determination year

B. the most recent 45-calendar-month period ending before the beginning of the determination year

C. the most recent 60-calendar-month period ending before the beginning of the determination year

D. the most recent 65-calendar-month period ending before the ending of the determination year

GAAP requires that all declared policyholder dividends be accrued at the balance sheet date, using actual amount to be paid.

A. True

B. False

Variable and semi-variable methods include an allocation based upon a usage or production basis.

A. True

B. False

What should define and communicate the goals and directions of the insurance company's economic activity during the current and following one or two fiscal years?

A. auxiliary plan

B. benefit plan

C. strategic plan

D. budget plan