Free CFE Exam Braindumps (page: 37)

Page 37 of 105

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method including anticipated prepayments.

  1. True
  2. False

Answer(s): A



If an insurance company actively buys and sells bonds and does not intend to hold the bonds to maturity, bonds are reported at market values and temporary changes in the market values of bonds are included in earnings, this is called:

  1. intermediate bond sharing
  2. Securities Valuation Office
  3. trading securities
  4. held-to-maturity securities

Answer(s): C



Furniture, fixtures and equipment, leasehold improvements, non-admitted assets, prepaid expenses are all adjustments required for:

  1. noninsurance subsidiaries
  2. insurance pre-requisites
  3. reinsurance statutory
  4. None of the above

Answer(s): A



If the subsidiary subsequently reports gross income, the insurer resumes applying the equity method only after its share of that gross income equals the share of net losses not recognized during the period that the equity method was suspended.

  1. True
  2. False

Answer(s): B



Page 37 of 105



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