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Free SOFA-CFE Exam Braindumps
Certified Financial iner Questions 131–135 (page: 28)

Updated On: 10-Feb-2026
Page 28 of 85
PDF with 416 Questions

The discounted unpaid loss as of the end of any tax year is the present value of losses determined by reference to which of the following factor?

  1. the gross amount
  2. the pattern of claims payments
  3. the rate of interest
  4. All of the above

Answer(s): D



The base period is defined as:

  1. the most recent 20-calendar-month period ending before the ending of the determination year
  2. the most recent 45-calendar-month period ending before the beginning of the determination year
  3. the most recent 60-calendar-month period ending before the beginning of the determination year
  4. the most recent 65-calendar-month period ending before the ending of the determination year

Answer(s): C



A rate based on the average market yield on outstanding obligations of the United States with maturities between three and nine years, and it is published monthly is known as:

  1. average market interest rate
  2. tax discounting federal rate
  3. midterm applicable federal rate
  4. none of the above

Answer(s): C



"Industry" discount factors are computed and published by the Treasury annually and are based on which of the following factor?

  1. the interest rate which is determined by the Treasury annually
  2. loss and loss adjustment expense payment patterns
  3. Both A and B
  4. Neither A nor B

Answer(s): C



Non-proportional reinsurance is reported on which one of the following three lines:

  1. Reinsurance assumed property, assumed liability, and assumed financial lines
  2. Proportional reinsurance, assumed liability, and assumed financial lines
  3. Reinsurance assumed property, assumed liability, and international business
  4. Reinsurance assumed property, non-proportional reinsurance, and assumed financial lines

Answer(s): A



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