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

2 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

1 months ago

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

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Paris

1 months ago

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

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Pearly

1 months ago

I think Guarantee Loan is definitely not a special fund.

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Denny

2 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

2 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

30 days ago

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

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Elliott

1 months ago

C) Participation is separate accounts

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Elke

1 months ago

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

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Winfred

2 months ago

D) Guarantee Loan

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Ilda

2 months ago

C) Participation is separate accounts

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Barbra

2 months ago

B) Group annuity contingency reserve

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Viva

2 months ago

A) Group contingency reserve

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Leonida

3 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

1 months ago

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

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Rene

1 months ago

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

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Wilda

2 months ago

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

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Ciara

3 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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