AIAF EXAM PACKAGE DEAL WITH COMPLETE SOLUTIONS GRADED A+

The method most commonly used by PC insurers to recognize premium is - Answer--deferralmatching Deferral-Matching: Any prem charged on a policy before its effective date will be: - Answer--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for a pa...

Who considered risk as a choice - Answer-Bernstein; "Risk is uncertainty about outcomes that can be either negative or positive" Definitions of Risk - Answer-ISO: effect of uncertainty on objects COSO: possibility that an event will occur and adversely affect achievement of outcomes RIMS: unce...

Two unique life insurer asset accounts - Answer--Policy Loans: Required by all states; loan by an insurer to a PH with the cash value of the PH life ins policy as collateral. Upon policy termination, the unpaid balance is subtracted from the policy benefit -Separate accounts: Established solely t...

Schedule F in the NAIC Annual Statement for LIFE insurers concerns - Answer-Contested and compromised claims Premiums are recognized as revenue when due for - Answer-Traditional life and annuity contracts Which one of the following is an asset on the balance sheet of life insurers but not PC insu...

5 basic assertions of accounting - Answer--complete, valuation, existence, ownership, classification, described and disclosed Required accounting criteria from a set of rules or requirements: - Answer--understandability, relevance, reliability, comparability/consistency, lack of bias, and cost-be...

Five basic assertions of accounting - Answer-complete, valued correctly, exists, belongs to the company, and is properly classified, described, and disclosed Accounting information criteria - Answer-Understandability, Relevance, Reliability, Comparability and Consistency, Lack of Bias, and Cost-B...

An estimate of the amount of money the insurer expects to pay in the future for losses that have already occurred and been reported, but are not yet settled. - Answer-Loss reserve The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the ...

When premiums earned during any specific accounting period are less than incurred losses plus underwriting expenses incurred during the period, there will be an - Answer-Underwriting loss. A principal liability of insurers is the unearned premium reserve. Which one of the following statements bes...

Some premium payment plans may include additional payments that exceed the amount required if the premium was paid in full at the policy inception. Such additional payments that are a function of the amount of premium payment are treated under U.S. regulatory accounting as - Answer-Finance charge...

When accounting for accident-year losses for year 20X6, which one of the following would be included? - Answer-A reserve change in 20X7 for a loss that occurred in 20X6 Correct. When accounting for accident-year losses for year 20X6, a reserve change in 20X7 for a loss that occurred in 20X6 would...