American Bankers Association Exam CTFA Topic 1 Question 42 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 42
Topic #: 1

[All CTFA Questions]

A holistic analysis in a multi-scenario framework of all significant factors that can affect an insurer's future financial condition is called:

AInsurance resting (IT)

BDynamic solvency testing (DST)

CFinancial testing (AT)

DAdequacy testing (AT)

Show Suggested Answer

Suggested Answer: B

by Tiffiny at Jan 10, 2023, 08:07 AM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Beatriz

1 months ago

I heard the insurance industry is a real snooze-fest, but 'insurance resting' takes it to a whole new level. Guess they're trying to lull the regulators to sleep with that one.

upvoted 0 times

...

Arlette

1 months ago

Dynamic solvency testing (DST) is the answer, no doubt about it. Unless the insurer is planning to use a crystal ball, this is the way to go.

upvoted 0 times

...

Viki

1 months ago

Insurance resting (IT)? Really? That sounds more like a nap than a financial analysis technique. Dynamic solvency testing (DST) is the clear winner here.

upvoted 0 times

Elizabeth

15 days ago

Financial testing (AT) and Adequacy testing (AT) are important, but Dynamic solvency testing (DST) covers all the bases.

upvoted 0 times

...

Elenora

18 days ago

Dynamic solvency testing (DST) is definitely the way to go.

upvoted 0 times

...

Ammie

24 days ago

I agree, Insurance resting (IT) does sound more like a nap than a serious analysis.

upvoted 0 times

...

Justine

1 months ago

Dynamic solvency testing (DST) is definitely the way to go for a thorough financial analysis.

upvoted 0 times

...

Mitzie

2 months ago

I'm not sure about the difference between financial testing (AT) and adequacy testing (AT). They sound too similar, so I'll go with the more specific option, dynamic solvency testing (DST).

upvoted 0 times

Felicia

16 days ago

Financial testing (AT) and adequacy testing (AT) do sound similar, but dynamic solvency testing (DST) is more specific.

upvoted 0 times

...

Lettie

1 months ago

I agree, it's important to consider all significant factors in a multi-scenario framework.

upvoted 0 times

...

Anissa

1 months ago

I think dynamic solvency testing (DST) is the best option.

upvoted 0 times

...

Dominic

2 months ago

Dynamic solvency testing (DST) seems like the most comprehensive approach to analyzing an insurer's future financial condition. It covers all the significant factors in a multi-scenario framework.

upvoted 0 times