Free CFE Exam Braindumps (page: 40)

Page 40 of 105

If the return on the investments is negative, owes the ceding company an amount equal to the negative return.

  1. serving company
  2. assuming company
  3. financing company
  4. Capital Company

Answer(s): B



Property-casualty insurance companies have essentially which of the following expense categories:

  1. acquisition, maintenance, overhead
  2. repurchases, maintenance, overhead
  3. acquisition, performance, overhead
  4. acquisition, testing, maintenance

Answer(s): A



Under GAAP, costs that vary with and are primarily related to the acquisition and issuance of insurance policies are known as:

  1. application assistance policy costs
  2. insurance policy acquisition costs
  3. deferred policy acquisition costs
  4. cause and effect costs

Answer(s): C



Which of the following is the condition, which must be met, for a contract to indemnify the ceding company against loss or liability relating to insurance risk?

  1. The reinsurer has assumed significant risk
  2. It is reasonably possible that the reinsurer may realize a significant loss
  3. Both A and B
  4. Neither A nor B

Answer(s): C



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