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American Bankers Association Exam CTFA Topic 5 Question 89 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 89
Topic #: 5

[All CTFA Questions]

What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount paid for the settlement?

Aethical act

Bcontrolled procedure

Cstructured settlement

DNone of the above

Show Suggested Answer

Suggested Answer: C

by Adela at May 04, 2025, 12:16 PM

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Aleisha

19 days ago

C) structured settlement? That sounds like it's more about how the claim is paid out, not how the reserve is eliminated. I'm going with B) on this one.

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Dion

17 days ago

A) ethical act

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Audry

1 months ago

Haha, A) ethical act? Yeah, right. As if insurance companies ever do anything purely out of the goodness of their hearts. It's all about the bottom line.

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Brunilda

18 days ago

Insurance companies are all about profit.

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Jovita

1 months ago

I'm not sure, but I think it could also be A) ethical act if the entity decides to do the right thing.

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Kanisha

1 months ago

D) None of the above? Really? I feel like there has to be a specific way to do this. Maybe it's a trick question?

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Marlon

1 months ago

I think the answer is B) controlled procedure. It just makes sense that there would be a structured process for eliminating the reserve.

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Carma

6 days ago

I think it could also be C) structured settlement, as that would involve a specific plan for eliminating the reserve.

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Tamesha

14 days ago

I agree, B) controlled procedure seems like the most logical choice.

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Caitlin

1 months ago

I believe it's C) structured settlement because it provides a systematic way to eliminate the reserve.

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Marshall

1 months ago

I agree with Cecily, a controlled procedure makes sense.

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Cecily

2 months ago

I think it's B) controlled procedure.

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