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AFE – Accredited Financial Examiner

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Showing 1–3 of 15 questions

Question 1

A Company’s investments are admitted assets properly valued which support the reserves and liabilities, including required capital and surplus. Many jurisdictions permit companies to make some investments that do not meet all of the strict regulatory requirements. These additional investments are often referred to as basket assets. Which of the following is/are true for Basket assets?

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    They have been made out of a company’s free surplus
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    Mortgage loans are first liens on the property backing them. Second or third-lien mortgages typically qualify as “basket” loans
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    A particular entity can obtain this benefit
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    They record investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced
Question 2

Uncollected premiums

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    Are also an asset in statutory accounting
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    Are usually those past the due date but in the grace period
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    Accounting is similar to that for deferred premiums in that only the net premiums are necessary to match the reserve liability
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    Only A and B
Question 3

Subsequent to the funding of a loan, the most common document/s obtained is/are:

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    New or updated appraisals as evidence of the current value of the property
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    Current financial statements on the borrower or the property, if the property is income producing, as evidence of the borrower’s continuing financial strength and of the property’s continuing ability to produce income
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    Periodic inspection reports as evidence of the physical condition of the property
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    Borrower’s financial statements