SOFE Certified Financial Examiner: SOFE-CFE

What is an agreement by which a transferor increases its surplus to policyholders by the transfer of loss obligations already incurred in excess of the consideration paid?

A. Retroactive reinsurance

B. Corporate expense

C. Capital gains

D. Foreign exchange commission

Those premiums arising from policies that an insurer transfers, in part or in whole (as the ceding company

or reinsured), to another insurance company are called:

A. transferred premiums

B. purchase premiums

C. reserved premiums

D. ceded reinsurance premiums

___________ are usually issued together with a bond or preferred stock, which entitles the holder to buy a specific amount of common stock at a specific price.

A. Merits

B. Certifications

C. Mutual funds

D. Warrants