Free CFE Exam Braindumps (page: 11)

Page 11 of 105

The in-force method requires the computation of which premium charges?

  1. for the amount charged the insured
  2. for the in-force premiums
  3. both A and B
  4. Neither A nor B

Answer(s): C



Under which method of calculating unearned premium reserves, the amortization procedure uses the written premiums for the full term of the policy, or for any additional premium paid.

  1. Direct
  2. Indirect
  3. In-force
  4. Effective data-recovery

Answer(s): A



Under audit-type policies, the actual amount of the in-force premium is not known at the inception of the policy.

  1. True
  2. False

Answer(s): A



What requires that the retrospective rated premiums reserve be calculated for each individual risk by applying the appropriate retrospective rating formula to each plan?

  1. Accuracy method
  2. inventory method
  3. Audit premium
  4. Endorsement

Answer(s): B



Page 11 of 105



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sena commented on May 31, 2019
I will see if this helps
TURKEY
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