CFSA IIA-CFSA IIA Study Notes

Certified Financial Services Auditor Questions and Answers

Question 9

_____________ insures two lives under one policy. Death benefits are paid to the surviving insured. The surviving insured usually has the option of purchasing an individual whole life policy of the same face amount without providing evidence of insurability.

Options:

Joint whole life policies

First-to-die policies

Modified premium whole life policies

A & B are one and the same category

Question 10

Insurance products yield _________ compared to regular investment option and this is besides the added incentives (read bonuses) offered by insurers.

Options:

Less

Almost the same

It depends

Question 11

Which one of the following is common misinterpretation during the calculation of VaR

Options:

The VaR calculation is based on an assumption that the portfolio is held constant over the

time interval in practice are actively managed so that as adverse condition develop actions will be taken to mitigate losses As a result the true probability of a lose as large as that predicted may be much less then Fore cast

The VaR Forecast is based on what has happened in the past If the future is not like the past the realized losses may be the lager (or smaller then predicted)

There is a tendency to interpret VaR as the largest loss that has on X percent probability of being exceeded. The largest that loss that may occur will not be too much larger than the aR, while for other portfolios (particularly those including highly levered derivatives), it may be many times greater than the VaR.

All of the above.

Question 12

It is a characteristic of insurance policy according to which the insured decides whether or not to pay the premium to be covered by the policy. If the insured pays the premium, the insurance coma pay is obliged to make payments as stated in the policy. What is it?

Options:

Unilateral

Bilateral

Incontestable

Adhesion

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Certified Financial Services Auditor Questions and Answers

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CompTIA

Fortinet

Microsoft

Salesforce