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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
The date on which the contract becomes effective is known as _.
Options
A reinsurance date
B record date
C report date
D policy date
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3
Question
During the underwriting process, information related to a mortgage loan is collected, and this information is the basis for a final decision as to whether or not the loan should be made. The documents generated during this underwriting process are all of the following EXCEPT:
Options
A Credit reports
B Loan applications
C Periodic inspection reports
D Borrower’s financial statements
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4
Question
When premium income less return premiums arising from policies issued or other contracts entered into reinsure other insurance entities that provide the related primary coverage are called:
Options
A Assumed reinsurance premiums
B Real reinsurance premiums
C Direct premiums
D Indirect premiums
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5
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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