SOFE Exam AFE 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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Nettie

19 days 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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Denny

27 days 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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1 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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Wilda

8 days ago

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

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Ciara

1 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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