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NEW QUESTION: 1
When a client purchases a variable contract through you, he should be informed that his money will be
invested:
A. at the previous day's close price for the contract.
B. in a product with a guaranteed cash value.
C. at the next price that is computed after the contract application is accepted by the insurance company.
D. at the most recent price for which the contract sold.
Answer: C
Explanation:
When a client purchases a variable contract, he should be informed that his money will be
invested at the next price that is computed after the contract application is accepted by the insurance
company. It is the responsibility of the member firm to transmit both the contract application and the
payment to the insurance company promptly. Variable life insurance policies do not have guaranteed
cash values. The cash value fluctuates with the performance of the underlying portfolio in which the
insurance company invests the money.

NEW QUESTION: 2
Which objects are available in the Front-End Action Log viewer History? Note: There are TWO correct answers for this Question.
A. Manually Assigned Alerts
B. Automatically Resolved Alerts
C. KPIs causing alerts
D. Applied Validation Rules
Answer: A,B

NEW QUESTION: 3
You are developing a Windows Communication Foundation (WCF) service.
The service operation takes a customer number as the only argument and returns information about the
customer.
The service requires a security token in the header of the message. You need to create a message contract
for the service.
Which code segment should you use?
A. [ServiceContract] public interface IService {
[OperationContract]
CustomerInformation GetCustomerInformation(Header header, int
customerNumber);
}
[MessageContract]
public class CustomerInformation
{
...
}
[MessageContract]
public class Header
{
[MessageHeader]
public string SecurityTag;
}
B. [ServiceContract] public interface IService {
[OperationContract]
CustomerInformation GetCustomerInformation(Header header, int
customerNumber);
}
[DataContract]
public class CustomerInformation
{
...
}
[MessageContract]
public class Header
{
[MessageHeader]
public string SecurityTag;
}
C. [ServiceContract] public interface IService {
[OperationContract] CustomerInformation GetCustomerInformation(CustomerNumber request); }
[DataContract]
public class CustomerInformation
{
...
}
[MessageContract]
public class CustomerNumber
{
[MessageHeader]
public string SecurityTag;
[MessageBodyMember]
public int CustomerNumberElement;
}
D. [ServiceContract] public interface IService {
[OperationContract] CustomerInformation GetCustomerInformation(CustomerNumber request); }
[MessageContract]
public class CustomerInformation
{
...
}
[MessageContract]
public class CustomerNumber
{
[MessageHeader]
public string SecurityTag;
[MessageBodyMember]
public int CustomerNumberElement;
}
Answer: D
Explanation:
Explanation/Reference: Using Message Contracts
(http://msdn.microsoft.com/en-us/library/ms730255.aspx)

NEW QUESTION: 4
What would be the consequences of a model of economic risk capital calculation that weighs all loans equally regardless of the credit rating of the counterparty?
I. Create an incentive to lend to the riskiest borrowers
II. Create an incentive to lend to the safest borrowers
III. Overstate economic capital requirements
IV. Understate economic capital requirements
A. III only
B. I and IV
C. I only
D. II and III
Answer: B
Explanation:
Explanation
If capital calculations are done in a standard way regardless of risk (as reflected by credit ratings), then it creates a perverse incentive for the lenders' employees to lend to the riskiest borrowers that offer the highest expected returns as there is no incentive to 'save' on economic capital requirements that are equal for both safe and unsafe borrowers. Therefore statement I is correct.
Given that the portfolio of such an institution is likely to then comprise poor quality borrowers, and economic capital would be based upon 'average' expected ratings, it is likely to carry lower economic capital given its exposures. Therefore any such economic risk capital model is likely to understate economic capital requirements. Therefore statement IV is correct.
Statements II and III are incorrect and Choice 'b' is the correct answer.