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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Armando

4 days ago

I'm not sure about C) Participation in separate accounts. Can someone explain why it is or isn't an example of special funds?

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Adell

5 days ago

I agree with Tricia. Guarantee Loan doesn't seem to fit the definition of special surplus funds.

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Tricia

15 days ago

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

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