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AIAF 114- Chapter 5 Practice Exam | Actual Exam Questions | 100% Correct Answers | Verified 2024 Version

AIAF 114 - CHAPTER 4 PRACTICE EXAM QUESTIONS

Two unique life insurer asset accounts - Answer--Policy Loans: Required by all states; loan by an insurer to a PH with the cash value of the PH life ins policy as collateral. Upon policy termination, the unpaid balance is subtracted from the policy benefit -Separate accounts: Established solely to enable variable insurance product owners to participate directly in the account's investment performance T or F: Mortgage loans are usually a larger asset for life insurers than PC insurers - Ans...

AIAF 114 CHAPTER 2 PRACTICE EXAM

AIAF 114- Chapter 5 Practice Exam | Actual Exam Questions | 100% Correct Answers | Verified 2024 Version

The method most commonly used by PC insurers to recognize premium is - Answer--deferralmatching Deferral-Matching: Any prem charged on a policy before its effective date will be: - Answer--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for a particular policy during a particular period equals: - Answer--writ prem during the period + beg UEP less the ending unearned prem liab Deferral-Matching: Actual Premium billing process - Answer--If t...

An estimate of the amount of money the insurer expects to pay in the future for losses that have already occurred and been reported, but are not yet settled. Loss reserve The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy. Loss adjustment expense (LAE) The expense an insurer incurs to investigate, defend, and settle claims that are associated with a specific claim. Allocated loss adjustment expense (ALAE) ...

When accounting for accident-year losses for year 20X6, which one of the following would be included? - Answer-A reserve change in 20X7 for a loss that occurred in 20X6 Correct. When accounting for accident-year losses for year 20X6, a reserve change in 20X7 for a loss that occurred in 20X6 would be included. An accident-year method aggregates incurred losses for a given period (such as twelve months) using all incurred losses for insured events that occurred during that period. Any losses ...

Some premium payment plans may include additional payments that exceed the amount required if the premium was paid in full at the policy inception. Such additional payments that are a function of the amount of premium payment are treated under U.S. regulatory accounting as - Answer-Finance charges. Under U.S. regulatory accounting, the liability for extended reporting endorsements covering a definite period into the future is recorded as - Answer-Unearned premium reserves Retrospective pre...

AIAF 114 - Chapter 4 Practice Exam Questions and answers | 2024/25