Duration is a measure of the first-order interest rate sensitivity of a financial instrument.
is the price in a hypothetical transaction at the measurement date in the market in which the reporting entity would transact for the asset or liability
A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.
The adjustments of the premium during the period of coverage based on actual experience during that same period are called:
_______________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.
The agents submit to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is an account current of:
Excess liability:
What may leave more risk than a company should prudently assume due to the risk exacerbating features of a particular product?
What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?
The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred is known as:
In which premium income less return premiums arising from policies issued by the entity collecting the premiums and acting as the primary insurance carrier?
Principal objectives of state statutes are: to investigate and settle some or all of the
Insurance entities establish
claims of the member companies.
Generally, a company earns a servicing fee when it retains the servicing of a block of loans in which it has sold all or part of the block. Service fees received from sales of participations are recorded as:
Which are the types of misstatements relevant to the auditor’s consideration of fraud in a financial statement audit?
Which of the following is NOT the step of the transaction cycle?
What is characterized by liabilities “shorter” than assets, which can lead to the liquidation of assets at depressed values in times of higher than expected interest rates?
Risk retention group is:
From what the most direct value-based requirements arise which are present in account value accumulation products?
The pro rata portion of premiums written allocable to unexpired policy periods represents unearned premiums, which are reflected as in the balance sheet.
The private pools can fall in which two categories:
An estimate due to time lags in the receipt of reports from cendants is called reinsurance.
Special surplus funds are portions of surplus allocated or appropriated for a specific purpose. Special surplus funds usually are allocated voluntarily but also may be required by an insurance regulator. Which one the following is NOT an example of special funds:
When securities repurchased under repos commonly have a principal amount that differs from principal amount of the security originally sold under the agreement, is known as:
What is the act in which the main sections are for Canadian companies and for foreign companies?
It indicates the lender’s commitment to make a loan in accordance with the terms specified either in the borrower’s loan application or in the terms the company approves for the loan.
GAAP have two important functions. First, they provide a set of standards that endeavor to measure with reasonable accuracy the assets held, liabilities owed, revenue earned, and expenses incurred by the company. For life insurance companies these measurement rules have been prescribed specifically for their specialized products. The second important function of GAAP is:
Which of the following in NOT the flow of transaction through the claims cycle?
These are the loans in which:
Arrangement is usually called commitment When the structure is completed and put in service, the loan is paid off from the proceeds of the long term financing, whatever its source Proper controls would require the lender to obtain documentation for the disbursed portion of the construction loan and be assured that the cost of the structure to date is equivalent to the disbursed portion of the construction loan. What are these?
Which of the following is NOT the Asset/ Liability Management (ALM) activity?
The auditor should obtain a sufficient understanding by performing risk assessment procedures to:
Subrogation is:
Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. In such a case the Accounting Department is responsible for all of the following EXCEPT:
What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?
An attitude that includes a questioning mind and a critical assessment of audit evidence is called:
Who is responsible for accounting for customer remittance advices and the agent’s current account?
Short-term portfolios are:
For purposes of establishing an appropriate financial statement reserve, the most important factors to consider are:
The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of its statutory financial statements, may include:
The establishment of loss reserves generally requires considerable judgment and knowledge of the entity’s business is known as:
With traditional whole life insurance:
Liabilities are recognized for known claims when sufficient information has been developed to indicate the involvement of a specific insurance policy.