ExamGecko
Home Home / ABA / CTFA

ABA CTFA Practice Test - Questions Answers, Page 87

Question list
Search
Search

_____________ include financial statements and notes, both on a consolidated and non consolidated basis.

A.
The annual Return
A.
The annual Return
Answers
B.
Provincial Adequacy Return
B.
Provincial Adequacy Return
Answers
C.
Constraints of self assessment
C.
Constraints of self assessment
Answers
D.
Static Capital Adequacy Test
D.
Static Capital Adequacy Test
Answers
Suggested answer: A

What of a life insurer's is determined by applying factors for risk components to specific on and off-balance sheet assets or liabilities and by adding the results?

A.
The annual Return
A.
The annual Return
Answers
B.
Business policy
B.
Business policy
Answers
C.
Provincial act
C.
Provincial act
Answers
D.
Capital requirement
D.
Capital requirement
Answers
Suggested answer: D

Which of the following is NOT the primary consideration for defining the capital of a company for purposes of measuring capital adequacy?

A.
Permanence
A.
Permanence
Answers
B.
Freedom from mandatory fixed charges
B.
Freedom from mandatory fixed charges
Answers
C.
Debtors of the business
C.
Debtors of the business
Answers
D.
Creditors of the business
D.
Creditors of the business
Answers
Suggested answer: C

The process of analyzing and projecting the trends of a company's capital position given its current circumstances, its recent past, and its intended business plan under a variety of future scenarios is called:

A.
Permanence and Reliability Testing
A.
Permanence and Reliability Testing
Answers
B.
Dynamic Capital Adequacy Testing
B.
Dynamic Capital Adequacy Testing
Answers
C.
Capital Market Testing
C.
Capital Market Testing
Answers
D.
None of the above
D.
None of the above
Answers
Suggested answer: B

Internal Control is:

A.
the process of controlling the impact of risk related events on a company
A.
the process of controlling the impact of risk related events on a company
Answers
B.
the process of planning the processes in order to avoid risk related events to a company
B.
the process of planning the processes in order to avoid risk related events to a company
Answers
C.
the process of designing the models to avoid risk related events on a company
C.
the process of designing the models to avoid risk related events on a company
Answers
D.
All of the above
D.
All of the above
Answers
Suggested answer: A

Identification and documentation of the controls and policies which address the risk management issues for each of the Standards is the necessary step for:

A.
Operational procedure
A.
Operational procedure
Answers
B.
Guideline procedure
B.
Guideline procedure
Answers
C.
Organizational policy
C.
Organizational policy
Answers
D.
Self-assessment process
D.
Self-assessment process
Answers
Suggested answer: D

Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?

A.
Appraisal-term acts
A.
Appraisal-term acts
Answers
B.
Variable-term portfolio
B.
Variable-term portfolio
Answers
C.
Fixed-term portfolio
C.
Fixed-term portfolio
Answers
D.
Revenue-earned portfolio
D.
Revenue-earned portfolio
Answers
Suggested answer: C

What is the act in which the main sections are for Canadian companies and for foreign companies?

A.
Investment reimbursement Act
A.
Investment reimbursement Act
Answers
B.
Insurance Companies Act
B.
Insurance Companies Act
Answers
C.
Regulatory Act
C.
Regulatory Act
Answers
D.
Revenue-earned Act
D.
Revenue-earned Act
Answers
Suggested answer: B

The approach in which the investment policy should ''identify acceptable ranges for investments in different types of instruments, including cash, equities, bonds and debentures, and real property is known as:

A.
Prudent Person Approach
A.
Prudent Person Approach
Answers
B.
Cash Outflow Approach
B.
Cash Outflow Approach
Answers
C.
Regular investment Approach
C.
Regular investment Approach
Answers
D.
Asset requisition Approach
D.
Asset requisition Approach
Answers
Suggested answer: A

Investments in equities by a life insurance company may not exceed the total of

A.
70 percent of the insurance company's regulatory capital
A.
70 percent of the insurance company's regulatory capital
Answers
B.
15 percent of the liabilities in respect of non-participating policies
B.
15 percent of the liabilities in respect of non-participating policies
Answers
C.
25 percent of the liabilities in respect of participating policies
C.
25 percent of the liabilities in respect of participating policies
Answers
D.
All of the above
D.
All of the above
Answers
Suggested answer: D
Total 895 questions
Go to page: of 90