Free SOFA-CFE Exam Braindumps
Certified Financial iner Questions 136–140 (page: 29)

Updated On: 10-Feb-2026

Taxable years of insurers for periods other than calendar years can occur in which way?

  1. an insurer is included in a consolidated tax return of a parent company that reports on a fiscal year basis
  2. a company leaves a consolidated return as the result of a sale
  3. a company joins in a different consolidated return at other than the beginning of a calendar year
  4. All of the above

Answer(s): D



Dividends generally constitute gross income, and dividends received from domestic corporations are eligible for which dividends?

  1. dividends allocated deduction
  2. dividends received deduction
  3. Gross dividends
  4. Conventional dividends deduction

Answer(s): B



The attorney-in-fact manages the ___________ and is paid a fee or commission for management services rendered.

  1. reciprocal
  2. dividend
  3. interinsurer
  4. reinsurer

Answer(s): A



What is designed to report information about an insurance company's ability to meet its obligations to policyholders and claimants, and focuses on surplus adequacy?

  1. taxation accountability
  2. statutory accounting practices
  3. claims and securities privileges
  4. Provisionary earning insurance

Answer(s): B



What is designed to meet the varying needs of the different users of financial statements, which is based on accrual accounting?

  1. generally accepted accounting principles
  2. statutory accounting practices
  3. accountability resource practices
  4. accounting principles of performance

Answer(s): A



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