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ABA CTFA Practice Test - Questions Answers, Page 84

Question list

List of questions

Question 831

(0)

Which of the following is Correct?

Question 832

(0)

What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before a particular date?

Question 833

(0)

The estimated liability includes the amount of money that will be used for future payments of:

Question 834

(0)

National Association of Insurance Commissioners stated that, ___________ has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at leas

Question 835

(0)

What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?

Question 836

(0)

The options for securities that insurance entities own and can deliver if the options are exercised by the option buyers are called:

Question 837

(0)

Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

Question 838

(0)

What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?

Question 839

(0)

The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity's investment and finance committees.

Question 840

(0)

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is called:

Question 831

Which of the following is Correct?

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

the financial position of an entity with a 2-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 4-to-1 ratio.

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is less affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

the financial position of an entity with a 4-to-1 reserve-to-surplus ratio is more affected by variability in its loss reserves than is an entity operating at 2-to-1 ratio.

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Question 832

What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before a particular date?

Independent claim adjustment

Payment of claims

Insured claim adjustments

Claim adjustment expenses

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Question 833

The estimated liability includes the amount of money that will be used for future payments of:

Reported claims to insurer

Claims related to insured events

Claim adjustment expenses

All of the above

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National Association of Insurance Commissioners stated that, ___________ has no effect on the valuation of securities for statutory accounting purposes, provided the amount of the collateral at least equals the required collateral.

Safety act

Investment security

Insurance track

Securities lending

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Question 835

What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?

Future contracts

Present contracts

Accounting contracts

Financial contracts

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Question 836

The options for securities that insurance entities own and can deliver if the options are exercised by the option buyers are called:

concealed transactions

covered-call options

financial servicing

safekeeping

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Question 837

Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

an economic hedge between a decline in market price and security

a decrease in yield on the underlying risk security

Both A & B

Neither A nor B

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Question 838

What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping?

Valuation data

Verification note

Transaction cycle

Investment evaluation

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Question 839

The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity's investment and finance committees.

True

False

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Question 840

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is called:

face value

fair value

market value

transaction value

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Total 895 questions