Free SOFE AFE Exam Actual Questions

The questions for AFE were last updated On Jun 10, 2025

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Question No. 1

What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?

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Correct Answer: C

Question No. 2

In many states, a claims-made insurance policy is required to:

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Correct Answer: D

Question No. 3

A logical first step toward understanding of a life and health insurance company and the related financial reporting considerations is to review the manner in which different interested parties view the end result of the accounting process for capital and surplus transactions, for example, the adequacy of the resulting balances.

Key interested parties include:

* Policyholders

* Agents

* Stockholders

* Insurance regulators

* Rating agencies

* Management

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Correct Answer: A

Question No. 4

The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.

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Correct Answer: A

Question No. 5

Principal objectives of state statutes are: to investigate and settle some or all of the

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Correct Answer: A