Aiaf 114 - Study guides, Class notes & Summaries

AIAF 114 CHAPTER 2 PRACTICE EXAM

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

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...

When accounting for accident-year losses for year 20X6, which one of the following would be included? - 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 that oc...

When premiums earned during any specific accounting period are less than incurred losses plus underwriting expenses incurred during the period, there will be an - Answer-Underwriting loss. A principal liability of insurers is the unearned premium reserve. Which one of the following statements best describes the unearned premium reserve? - Answer-The unearned premium reserve represents premiums paid but not yet earned Unrealized capital gains are not included in accounting income. Under stat...

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 ...

A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation and reported results. - Generally Accepted Accounting Principles (GAAP) The accounting principles and practices that are prescribed or permitted by an insurer's domiciliary state and that insurers must follow. - Statutory Accounting Principles (SAP) The valuation of an asset based on financial models instead of market price. - Mark-to-model The value of...

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

AIAF 114: Assignment 1 | With complete solution | 2024/25

Loss reserve - ANSWER-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 adjustment expense (LAE) - ANSWER-The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy. Allocated loss adjustment expense (ALAE) - ANSWER-The expense an insurer incurs to investigate, defend, and settle claims that are associate...