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In case of supplementary contracts, the amount of each payment is computed on the basis of the assumed (or guaranteed) interest rate and the number and frequency of payments selected. For example:
Cash does include funds in transit, unless the deposit was prepared and sent to the bank. If the deposit was sent to the bank, it is considered cash and entered into the company’s books and is no longer in transit. Funds in transit not yet sent to the bank are entered:
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?
In determining whether an operation is self-sustaining or integrated, what you do not need to consider is:
When policy periods expire, the premiums written are earned and are recognized as:
A change in _______ or its application is appropriate if the change results in a measurement that is equally or more representative of fair value in the circumstances.
What is applied to the sale of all or a block of an entity’s insurance in force of another entity?
What is based on statistical data and are large groups of similar risks can be classified by a few and easily identifiable characteristics and result in standard rates?
In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:
Duration is a measure of the first-order interest rate sensitivity of a financial instrument.
Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?
The profitability of an insurance entity on a statutory basis is generally gauged by:
_______ include financial statements and notes, both on a consolidated and non consolidated basis.
The maximum error in the population that the auditor is willing to accept is called:
What is the second-order measure of the interest rate sensitivity of an instrument and the sensitivity of duration to changes in interest rates?
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?
What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?
In which policies the contract provides for insurance coverage for a fixed period of duration and enables the insurer to not renew the contract or adjust the provisions of the contract at the end of the contract period?
The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity’s investment and finance committees.
The difference between the case-basis reserves and the estimated ultimate cost of such recorded claims is known as:
It is defined as a debt restructuring whereby the insurer for economic or legal reasons related to borrower financial difficulties, grants a concession to the debtor that it would not otherwise grant.
Interest rates are a key element of any option pricing exercise because cash flows are discounted at interest.
Which risk assessment procedures are used to obtain an understanding of the entity and its environment, including its internal control?
_______________ 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.
______ is used when the rates for large or usual risks are established almost entirely by the skill and experience of the rate maker.
A stock life insurance company writing both participating and nonparticipating business must follow special accounting procedures under the laws of certain jurisdictions. The purpose of these special accounting procedures is to provide for:
Accounting transactions that occur after the initial investment in a loan and during the period the loan is being serviced fall into two broad categories. Which one of the following is out of those categories?
What are especially effective in investment strategy, because of the powerful risk management attributes they provide?
What limits the repurchase price to a stipulated percentage of the face amount of the certificate?
The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the security represents:
TESTED 25 Apr 2024