SOFE AFE Exam - Topic 1 Question 53 Discussion

Actual exam question for SOFE's AFE exam

Question #: 53
Topic #: 1

[All AFE Questions]

Special surplus funds are portions of surplus allocated or appropriated for a specific purpose. Special surplus funds usually are allocated voluntarily but also may be required by an insurance regulator. Which one the following is NOT an example of special funds:

AGroup contingency reserve

BGroup annuity contingency reserve

CParticipation is separate accounts

DGuarantee Loan

Show Suggested Answer

Suggested Answer: B

by Laticia at Feb 05, 2023, 03:29 AM

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Sarah

4 months ago

Group annuity contingency reserve is also a special fund, no doubt.

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Beckie

4 months ago

Wait, guarantee loan isn't a special fund? That’s surprising!

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Gregoria

4 months ago

Participation in separate accounts seems like a gray area.

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Yun

4 months ago

I agree, but what about guarantee loan?

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Wai

4 months ago

Group contingency reserve is definitely a special fund.

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Oliva

5 months ago

I think the Group contingency reserve is a special fund, but I’m not confident about the Guarantee Loan. It seems like it might be the odd one out here.

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Clorinda

5 months ago

This is tricky! I recall that participation in separate accounts is often treated differently, but I can't quite remember if it's considered a special fund or not.

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Dorthy

5 months ago

I feel like I've seen a similar question before, and I think the Group annuity contingency reserve is definitely a special fund. Maybe it's the Guarantee Loan that's not?

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Arleen

5 months ago

I remember studying about special surplus funds, but I'm not entirely sure which one doesn't fit. I think it might be the Guarantee Loan, but I could be wrong.

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Herman

5 months ago

Okay, I think I've got a handle on this. Let me walk through the code step-by-step and see if I can identify the expected output.

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Maurine

5 months ago

This seems straightforward enough. I'll just need to carefully match the app type and deployment method to the correct Application Insights configuration options.

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Chuck

5 months ago

This is a tricky one. I feel like I know the general concepts, but applying them to this specific scenario is challenging. I'll have to review my notes and try to break down the question step-by-step.

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Nettie

9 months ago

Guarantee Loan? Really? That's about as special as a plain old bank loan. I'd go with C, 'participation in separate accounts' - that one just screams 'not a special fund' to me.

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Annelle

8 months ago

Yeah, participation in separate accounts seems more unique and specific.

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Paris

8 months ago

I agree, it's too common to be considered special.

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Pearly

8 months ago

I think Guarantee Loan is definitely not a special fund.

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Denny

10 months ago

Group contingency reserve? Sounds like a secret handshake club for insurance nerds. I'll take the 'Guarantee Loan' option and call it a day.

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Shayne

10 months ago

Ah, the old 'group annuity contingency reserve' trick. Nice try, but I'm not falling for that one. D all the way!

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Bev

8 months ago

I think you're right, C) Participation is separate accounts is also not an example of special funds.

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Elliott

8 months ago

C) Participation is separate accounts

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Elke

9 months ago

I agree, D) Guarantee Loan is not an example of special funds.

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Winfred

9 months ago

D) Guarantee Loan

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Ilda

9 months ago

C) Participation is separate accounts

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Barbra

9 months ago

B) Group annuity contingency reserve

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Viva

9 months ago

A) Group contingency reserve

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Leonida

10 months ago

Hmm, participation in separate accounts? That's got to be the odd one out here. I'm going with C on this one.

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Kent

8 months ago

User 3: Yeah, C seems like the right choice here.

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Rene

9 months ago

User 2: I agree, I'm going with C as well.

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Wilda

9 months ago

User 1: I think participation in separate accounts is the odd one out.

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Ciara

10 months ago

Group contingency reserve? Sounds like a slush fund to me. I'll go with D, Guarantee Loan. That's the only one that doesn't scream 'special funds' to me.

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