Free CFE Exam Braindumps (page: 33)

Page 32 of 105

A nonlife insurance company's basic tax formula is roughly equivalent to the standard corporate tax formula, with which of the following insurance specific modifications:

  1. Reserves
  2. Unearned Premium Reserve
  3. Proration
  4. All of the above

Answer(s): D



Premium income is deferred by 80 percent of the increase in the reserve for premiums that applies to the unexpired period of an insurance contract

  1. earned
  2. unearned
  3. obligatory
  4. reserved

Answer(s): B



15 percent of otherwise tax exempt interest income and the dividends received deduction are included in the company's income, in which factor?

  1. Offset property
  2. Colonial act
  3. Proration
  4. reserved act

Answer(s): C



What begins with gross premiums written and are reduced by return premiums and premiums paid for reinsurance?

  1. Premiums unearned
  2. Premiums earned
  3. Deposited premiums
  4. Reinsured premiums

Answer(s): B






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