Free SOFA-CFE Exam Braindumps
Certified Financial iner Questions 201–205 (page: 42)

Updated On: 10-Feb-2026

The reasons for allocating surplus usually relate to profit measurement and below which of the following is the example of allocation:

  1. rate of return pricing
  2. internal company profit measures by business segment
  3. certain state excess profit laws
  4. All of the above

Answer(s): D



A company normally will generate maximum after-tax return on investments by investing in tax exempt instruments.

  1. True
  2. False

Answer(s): A



The tax effect of the 20 percent adjustment to what deduction depends on underwriting decisions?

  1. Earned Premium Reserve
  2. Alternative minimum tax
  3. Unearned Premium Reserve
  4. Strategic reserve

Answer(s): C



If a coverage dispute should arise at some future time, the contract documentation can prove to be invaluable during:

  1. reinsurance distribute process
  2. dispute resolution process
  3. contractual distribute process
  4. Legal agreement process

Answer(s): B



Defining the company's objectives and activities, prepares its long-and-short-range plans, Controlling access to the company's assets and premises are all recorded in:

  1. Financial control
  2. Economic management
  3. Capital strategy
  4. Financial statement

Answer(s): D



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