Pass the SOFE AFE Designation AFE Questions and answers with ExamsMirror

The two most common types of dollar rolls are:

Extrapolation of historical dollars, projection of separate frequency data, use of expected loss ratios are all projection methods for:

The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each $l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon amount due at maturity.

Which projection method uses paid losses plus reserves on outstanding claims?

Asset/Liability Management recognizes that the financial impact of an asset or liability is mainly realized through its:

The Appointed Actuary has a responsibility to express an opinion on the appropriateness of certain actuarially determined amounts in the financial statements.

The difference between the case-basis reserves and the estimated ultimate cost of such recorded claims is known as:

Interest rates are a key element of any option pricing exercise because cash flows are discounted at interest.

There is pending litigation concerning the acquisition of a subsidiary and it is probable such litigation will result in its divestiture is an example of:

The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract: