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SOFE Exam AFE Topic 1 Question 91 Discussion

Actual exam question for SOFE's AFE exam
Question #: 91
Topic #: 1
[All AFE Questions]

A stock life insurance company writing both participating and nonparticipating business must follow special accounting procedures under the laws of certain jurisdictions. The purpose of these special accounting procedures is to provide for:

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Suggested Answer: D

by Teddy at Nov 19, 2024, 01:56 AM

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Izetta
1 months ago
Option A all the way! Separating the accounting for participating and nonparticipating business is key. Otherwise, it would be like trying to herd cats - a total mess!
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Viva
1 months ago
I'm going with C on this one. Multiple statutory filings for the company as a whole? Sounds like a real headache for the accountants, but it's probably necessary to ensure proper oversight.
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Pauline
2 months ago
Hmm, I'd say the correct answer is D. These special procedures cover all the bases - accounting separation, profit distribution, and even statutory filings. Gotta keep those regulators happy!
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Alpha
6 days ago
Definitely, it's important to follow the laws and regulations in different jurisdictions.
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Mozell
8 days ago
Yeah, it makes sense to cover all the bases with these special procedures.
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Natalya
1 months ago
I agree, D seems like the most comprehensive option.
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Willard
2 months ago
Definitely option B. It's crucial to have a clear separation of accounts to properly allocate profits from participating business. Can't have the company pocketing all the profits, you know?
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Audry
12 days ago
Having clear accounting procedures benefits both the company and policyholders.
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Alesia
14 days ago
I think it's a good practice to separate profits for policyholders and stockholders.
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Paola
23 days ago
It's necessary to have transparency in accounting for participating business.
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Shonda
1 months ago
I agree, option B is important to ensure fair distribution of profits.
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Matilda
2 months ago
The purpose of these special accounting procedures is to ensure transparency and fairness in the distribution of profits between participating policyholders and the company's stockholders. Seems like a reasonable approach to me.
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Lai
1 months ago
B) This is a critical process, since profits from participating business are regulated as to their distribution among participating policyholders and the company's stockholders
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Son
2 months ago
A) A separation of accounting, so that profits applicable to participating and nonparticipating business can be appropriately determined
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Sylvia
2 months ago
I believe option D is correct, as any of these reasons could be the purpose of the special accounting procedures.
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Alise
2 months ago
I agree, it's important to determine profits for participating and nonparticipating business separately.
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Yoko
2 months ago
I think the special accounting procedures are necessary for separating profits.
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