Aiaf 114 - Study guides, Class notes & Summaries

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 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...

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

Marcos is investing $5 today at 7 percent interest so he can have $35 later. This $35 is referred to as the: - ANSWER-Future Value Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 six years from now. Which one of the following terms refers to the $5,318 - ANSWER-Present Value Given an interest rate of zero percent, the future value of a lump sum invested today will always: - ANSWER-remain constant, regardless of the investment time period. How long...

AIAF 114 2.0 With 100% ACCURATE QUESTIONS AND ANSWERS ALREADY GRADED A+

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...

AIAF 114 - Chapter 4 Practice Exam Questions With 100% SURE ANSWERS

AIAF 114- Chapter 5 Practice Exam With Questions And 100% SURE ANSWERS

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 twelv...

The method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching 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 particular policy during a particular period equals: - ANSWER--writ prem during the period + beg UEP less the ending unearned prem liab Deferral-Matching: Actual Premium billing process - ANSWER-...