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Accredited Financial Examiner (AFE) Questions 71–75 (page: 16)

Updated On: 10-Feb-2026

What is considered "pure" mortality protection?

  1. Life insurance
  2. Premium plan
  3. Transience policy
  4. Assurance plan

Answer(s): A



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

  1. Whole life insurance
  2. Permanent life insurance
  3. Fiscally examined insurance
  4. Life time insurance

Answer(s): B



With traditional whole life insurance:

  1. an interest rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance
  2. an expense rate on reserves is explicit on the premium rate and is locked in at time of policy issuance
  3. an interest rate on reserves is implicit in the premium rate and is locked in at time of policy issuance
  4. a debt rate on reserves is implicit in the premium rate and is unlocked at time of policy issuance

Answer(s): C



What features a reserve that accumulates at company declared credited interest rates, which are periodically reset?

  1. Credited life insurance
  2. Periodic life insurance
  3. Premium life insurance
  4. Universal life insurance

Answer(s): D



What funnels premium dollars into separate accounts which means segregated pools of bonds or stocks?

  1. Variable life insurance
  2. Periodic life insurance
  3. Insurance plan
  4. Isolated Interest rate

Answer(s): A



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