The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:
Prepayment of a conventional mortgage loan, prior to its specified maturity, is discouraged through the general market acceptance of significant prepayment penalties. Often these penalties are calculated so that when prevailing market interest rates are:
Subsequent to the funding of a loan, the most common document/s obtained is/are:
A process designed to provide reasonable assurance about the achievement of the entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations is called:
What give the issuer the right to retire the bond at certain times, typically if prevailing market interest rates fall below the rate on the bond?
Reinsurance is defines as:
Changes in payment procedures or changes in the definition of payment date for coding purposes may or may not affect loss reserve developments.
The maximum error in the population that the auditor is willing to accept is called:
The loss reserve estimate is a significant estimate in the financial statements of an uninsured entity.
Final approval should be obtained prior to placing a new system into operation is the activity that can be fall into which control?
What funnels premium dollars into separate accounts which means segregated pools of bonds or stocks?
With fixed deferred annuities;
Which of the following is NOT the date that is the key to classify the chronology of the data?
Financial statements of a self-sustaining foreign operation are translated using the current rate method whereby assets and liabilities are translated in the reporting currency using the exchange rate.
Most life insurance companies that are taxable in Canada fall into which one of the following classifications:
What is made on an instrument-by-instrument basis, generally when an instrument is initially recognized in the financial statements?
Which of the following id NOT the kind of Insurance?
The organizations in which the ownership and control of operations are vested in the policyholders are known as:
In a yield-maintenance agreement:
The name of each Subsidiary, Controlled and Affiliated (SCA) entity and percentage of ownership of common stock must be put to disclosure when:
The Annual Statement reporting requirements for the participating and nonparticipating branches is limited to major and secondary lines of business, but a company would:
When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deducible, this leads to the formation of:
What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?
Which of the following is NOT the interrelated component of internal control?
The two most common types of dollar rolls are:
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.
A liability for premiums paid in advance can also arise when insurers allow policyholders to pay several years’ premiums at one time. Since the insurer has the use of policyholder funds that are not yet due, it is customary for the insurer to:
Coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates is normally refers to as:
What is applied to the sale of all or a block of an entity’s insurance in force of another entity?
An annuity contract provides:
In the NAIC Accounting Practices and Procedures Manual there is limitation on the amount of EDP equipment and operating systems software, that can be shown as admitted assets. Companies are generally limited to of the reporting entity’s capital and surplus, as reported in the financial statement most recently filed with the domiciliary commissioner adjusted to exclude any EDP and operating system software, net deferred tax assets and positive goodwill.
Generally, Participation income is an income stream due the company and is based upon the financial results of the borrower and/or borrowing business entity. Although it can take several forms, the more prominent ones are:
Which of the following is NOT the Asset/ Liability Management (ALM) activity?
Monetary items and non-monetary items carried at market value are translated into the reporting currency at the rate of exchange in effect on the balance sheet date under:
Tax Act states that:
On both old and new business, companies can also avoid premium notes by entering into agreements involving deposits of a portion of the premium with an extension on the balance. These deposits are treated as:
What may leave more risk than a company should prudently assume due to the risk exacerbating features of a particular product?
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?
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:
Extrapolation of historical dollars, projection of separate frequency data, use of expected loss ratios are all projection methods for:
The market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity for the asset or liability is known as: