Which of the following are duties of insurance commissioners in regulating insurers?
I. Rule of the constitutionality of insurance law.
II. Determine if an insurer meets the requirements to obtain a license.
III. Render decisions on the meaning of policy terms.
IV. Conduct financial investigations of insurers operating in the state.
The trustee is responsible for producing a schedule of distribution which includes information as:
A UIT typically issues redeemable securities (or “units”), like a mutual fund, which means:
A bond currently priced at $1,250 with a 10% nominal yield of $100 would have a current field of _____________. The same bond priced at $800 would have a current yield of __________.
Managed care health techniques are most often practical by organizations and professionals that assume risk for a/an:
Customer accounts:
Ensure that the firm is exercising due diligence in the opening and supervision of customer accounts. The procedures should be formalized in writing and in accordance with the rules and regulations of the appropriate regulatory authority.
Ensure that daily customer positions and option exercises are in accordance with the limits established by the appropriate exchange. Verify that commissions generated by customer trades are properly calculated and posted to the general ledger.
Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:
_________ insures the real estate loans of borrowers who qualify for the program.
Which of the following are generally considered to be characteristics of savings deposits?
I. Interest bearing.
II. No stated maturity.
III. Penalty for withdrawal.
These are the most common type of municipal bonds and are backed by projected revenue streams from the infrastructure built by the bond. These revenues can be in the form of rental r user fees for facilities or even tolls for road improvements. What are these?
Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor’s (S&P) or Moody’s. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.
_____________ loans allow the consumer to repay a loan over a set period. They require periodic principal and interest payments The loan is generally secured by the item being purchased. Automobile loans or real estate mortgage loans are common types of such types of loans.
Bank may serve as trustee or custodian for pension and profit sharing plans that self- employed individuals establish for them selves and their employees. These types of trust are referred to as:
Which one of the following is/are NOT the type of retirement plans that banks may administer?
Notes and bonds are long-term debt instruments. Long-term debt instruments are sold at ______________ when the market rate _____________ the stated interest rate.
Internal auditing controls (e.g. segregation of duties, monitoring, reconciliation), management controls (e.g. the plan, methods and procedures adopted by management to ensure its goals are met, including systems for measuring reporting and monitoring program performance), physical controls (e.g. security), and Information technology control (e.g. access security controls ,data center operation controls). All these are examples of:
Banks can record interest earned on trading securities as either interest income or trading income. However, the recommended method is:
When conducting an audit of securities investments, the following objectives and audit steps should be considered EXCEPT:
Visa and MasterCard have teamed up to develop payment card Industry ( PCI) Data Security standards to govern the safekeeping of account information. Which of the following is NOT out of the major goals of PCI standards?
“An element of information, from a transaction to an entire system, is appropriately entered, developed, changed, or used with proper authority.” Which of the following element of integrity supports this statement?
Financial institutions regularly identify uncollectible accounts and charge them off against the reserve of:
A client makes the following statement: “If you make us put property tags and numbers on major equipment, next we will have to put tags on every pen, pencil, and paper clip in the place.” This is the argument that if a particular action is taken, it will inevitably lead to another, less desirable action. We may call this:
Which one of the following statements elaborates some insurance products that fall under the regulatory authority of SEC?
How many member states of the European Union are participating in the single Euro Currency?
An area of FOMC board responsibilities is the development and administration of regulation that implement major federal laws governing consumer credit, such as:
Pension plans that an Employer establishes for retired or disabled employees, regardless of whether an employee contributes, are known as:
Cash and due from other bank accounts that are listed as a caption on the balance sheet include all currency and coin, cash being collected, and account balances with other banks:
Deposit in many banks are insured by the ______________, which ensure that depositors will get their money back up to a stated limit, if a bank should fail:
A financial institution’s performance in helping to meet the credit needs of its community is evaluated in context of information about:
The mission of the NAIC is to assist State Insurance regulators, individually and collectively, in serving the public interest and achieving all the following fundamental insurance regulatory goals in a responsive, efficient and cost effective manner, consistent with the wishes of its members EXCEPT:
A major function of NAIC is to encourage __________ among state insurance departments through the development of model bills and regulations.
One fund may invest on mostly established “blue chip” (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:
Which of the following accounts would NOT be found on a life insurance company’s statutory financial statements?
The management of index funds is _________ than the management of non-index funds, because an index fund manager only needs to track a relatively fixed index of securities.
The purpose of audits of financial statements is to issue an opinion on the fairness of the financial statements and to evaluate all of the following assertions (explicit or implicit) by management EXCEPT:
Stock transfer agent, Bond registrar, stock registrar and dividend reinvestments agent are the additional duties of:
“Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.” This statement best explains one of the following principles:
During the posting process of ledger records on deposit account banks may reject some transactions because:
Securities products include:
1. Trusts
2. Annuities
3. Derivatives
4. Stocks
5. Bonds
6. Commodities
7. Mutual Funds
8. Pension Funds
9. Term Loans
10. Asset Management
11. Money Market Products
A heath services delivery organization that offers the option its members choose to receive a service form participating or a non-participating provider which one of the following best suits to the definition?
Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for charge-offs and select a sample of charged-off loans whether they are handled properly.
Another useful test is:
These are similar to coupon bonds in that ownership is based on possession. These have not been issued for the last couple of decades, however those previously issued will continue to exist until they reach maturity. What are these?
Asset Management is the term usually given to describe companies that run manual Funds. The largest are those who provide:
A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out “or foreclosure process. There are various scenarios typical for determining special servicers; as mentioned below, EXCEPT:
“A negotiated offering in which a new issue of municipal securities is sold on an agency basis by a placement agent directly to institutional or private investors rather than through an offering to the general investing public” is referred as:
These policies provide a death benefit when the insured dies during a specified period. The term of this type of policy is usually not less than one year, but may be up to 40 years or more. It provides only temporary protection because coverage ends at the end of the term of coverage stated in the policy. What are these?
Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE:
Which one of the following is common misinterpretation during the calculation of VaR
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TESTED 05 May 2024
