Aiaf - Study guides, Class notes & Summaries

When accounting for accident-year losses for year 20X6, which one of the following would be included? - 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 be included. An accident-year method aggregates incurred losses for a given period (such as twelve months) using all incurred losses for insured events that occurred during that period. Any losses that oc...

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 best describes the unearned premium reserve? - Answer-The unearned premium reserve represents premiums paid but not yet earned Unrealized capital gains are not included in accounting income. Under stat...

A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation and reported results. - Generally Accepted Accounting Principles (GAAP) The accounting principles and practices that are prescribed or permitted by an insurer's domiciliary state and that insurers must follow. - Statutory Accounting Principles (SAP) The valuation of an asset based on financial models instead of market price. - Mark-to-model The value of...

AIAF 114: Assignment 1 | With complete solution | 2024/25

Loss reserve - ANSWER-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. Loss adjustment expense (LAE) - ANSWER-The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy. Allocated loss adjustment expense (ALAE) - ANSWER-The expense an insurer incurs to investigate, defend, and settle claims that are associate...

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 insurers - Answer-Contract loans Changes in life insurers' liability for future policy benefits are - Answer-Recognized as expenses in the period in which the changes occur Which one of the following...

AIAF 114- Chapter 5 Practice Exam | Actual Exam Questions | 100% Correct Answers | Verified 2024 Version When accounting for accident-year losses for year 20X6, which one of the following would be included? - 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 be included. An accident-year method aggregates incurred losses for a given period (such as twe...

Which of the following categories of principles is most closely related to gathering audit evidence? A.) performance B.) reasonable assurance C.) reporting D.) responsibilities - ANSWER-A Which of the following is not related to ethical requirements of auditors? A.) due care B.) independence in appearance C.) independence in fact D.) professional judgement - ANSWER-D One of an accounting firm's basic objectives is to provide professional services that conform to professio...

When accounting for accident-year losses for year 20X6, which one of the following would be included? - 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 be included. An accident-year method aggregates incurred losses for a given period (such as twelve months) using all incurred losses for insured events that occurred during that period. Any losses that oc...

Major steps of project development and put them in the correct order from the start of a project to the end. - ANSWER-Planning, Design, Bid, Construction Identify the three key participants in a project team, as well as at least two other project participants. - ANSWER-Owner, designers (architects and engineers), and contractor Identify the 4 major types of construction markets. - ANSWER-Heavy civil, commercial, residential, and industrial Discuss the level of influence on cost vs. cost...