SOFE Accredited Financial Examiner AFE Exam Questions

Which counterparts of duration and convexity are the first- and second order sensitivities of an equity market instrument to changes in the price of the underlying?

The agents submits to the insurance entity a statement of all policies issued or due during the current month , and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is a account current of:

The return on an instrument over a period of time is a combination of the cash flow it generates and the change in its value.

The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each $l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon amount due at maturity.

What usually features a fixed premium that acts to levelize the policyholder's outlay over the lifetime of the policy?

What is the purpose of consolidated financial statements?

Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?