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Accredited Financial Examiner (AFE) Questions 126–130 (page: 27)

Updated On: 10-Feb-2026

What is the act in which the main sections are for Canadian companies and for foreign companies?

  1. Investment reimbursement Act
  2. Insurance Companies Act
  3. Regulatory Act
  4. Revenue-earned Act

Answer(s): B



The approach in which the investment policy should "identify acceptable ranges for investments in different types of instruments, including cash, equities, bonds and debentures, and real property is known as:

  1. Prudent Person Approach
  2. Cash Outflow Approach
  3. Regular investment Approach
  4. Asset requisition Approach

Answer(s): A



Investments in equities by a life insurance company may not exceed the total of

  1. 70 percent of the insurance company's regulatory capital
  2. 15 percent of the liabilities in respect of non-participating policies
  3. 25 percent of the liabilities in respect of participating policies
  4. All of the above

Answer(s): D



A substantial investment is defined as any investment comprising more than 15 percent of an enterprise's voting shares or greater than 35 percent of its equity.

  1. True
  2. False

Answer(s): B



The Appointed Actuary has a responsibility to express an opinion on the appropriateness of certain actuarially determined amounts in the financial statements.

  1. True
  2. False

Answer(s): A



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