Financial SOFA-CFE Exam
Certified Financial iner (Page 16 )

Updated On: 9-Feb-2026

What is a negotiable instrument that is accepted by the bank only upon the approval of the payor?

  1. cash flow
  2. draft
  3. check
  4. wire transfer

Answer(s): B



When the draft is received for acceptance from the bank, the liability that is debited and funds are transferred from the company's operating cash account to the bank is called:

  1. draft payable
  2. draft receivable
  3. internal signature cards
  4. transferring debts

Answer(s): A



What provides the insurance company with the ability to electronically send the bank daily listings of issued checks?

  1. wire transfers
  2. pay pal
  3. Positive pay
  4. structuring transfers

Answer(s): C



Which reports are also generated to indicate results from each rein surer by policy year or accident year?

  1. Individual Risk Experience
  2. Reinsurance Recoverable
  3. Ceded reinsurance experience
  4. Policy Year

Answer(s): C



There are two periods of time over which claims are analyzed:

  1. mortgage year and policy year
  2. accident year and policy year
  3. accident year and ceded year
  4. adjusting year and sales year

Answer(s): B






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