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Accredited Financial Examiner (AFE) (AFE) - SOFE Exam Questions

Last updated on June 20, 2026

97% Exam Compliance
286 Total Questions
1
Question
The balloon payment technique uses level payments of principal and interest but for a shorter period than is required to retire the loan fully during its term. For example, a loan with a 8.5 percent interest
rate utilizing a 25-year amortization schedule with a 7-year maturity results in only $111 of each
$l,000 principal being repaid. Thus, $889 of each $l,000 originally borrowed constitutes the balloon
amount due at maturity.
Options
A 4th-year
B 7th-year
C 5th-year
D 6th-year
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2
Question
For reinsurance assumed, the concepts analogous to attachment points and limits are referred to as
Options
A Retention levels
B Frequency Levels
C Severity Levels
D Policy levels
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3
Question
Scope of Examination and Report of Independent Certified Public Accountant states that:
Options
A the investor shall also require that the independent certified public accountant subject the data used by the appointed actuary to maintaining procedure.
B the insurer shall also require that the group of certified public accountant subject the data used by the appointed actuary to planning procedure.
C the insurer shall also require that the independent certified public accountant subject the data used by the appointed actuary to testing procedure.
D the investor shall also require that the independent certified private accountant subject the data used by the appointed actuary to developing procedure.
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4
Question
The methods used for the premium rates establishment are:
Options
A Manual, experimental and merit rating
B Manual, judgmental and merit rating
C Commercial, judgmental and merit rating
D Manual, judgmental and premium rating
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5
Question
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.
Options
A Commercial debt restructuring
B Residential debt restructuring
C A troubled debt restructuring
D Mortgage debt restructuring
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