Aiaf 114 - Study guides, Class notes & Summaries

Non-admitted assets - ANSWER-Types of property, such as office furniture and equipment, that regulators do not allow insurers to show as assets on financial statements because these assets cannot readily be converted to cash at or near their market value Admitted Assets - ANSWER-Assets meeting minimum standards of liquidity that an insurer is allowed to report on its balance sheet in accordance with statutory accounting principles Unauthorized reinsurer - ANSWER-A reinsurer that is not lic...

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

Marcos is investing $5 today at 7 percent interest so he can have $35 later. This $35 is referred to as the: - ANSWER-Future Value Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 six years from now. Which one of the following terms refers to the $5,318 - ANSWER-Present Value Given an interest rate of zero percent, the future value of a lump sum invested today will always: - ANSWER-remain constant, regardless of the investment time period. How long...

AIAF 114 2.0 With 100% ACCURATE QUESTIONS AND ANSWERS ALREADY GRADED A+

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...

AIAF 114 - Chapter 4 Practice Exam Questions With 100% SURE ANSWERS

AIAF 114- Chapter 5 Practice Exam With Questions And 100% SURE ANSWERS

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

The method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching 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-...