SOFE Exam AFE Topic 3 Question 79 Discussion

Actual exam question for SOFE's AFE exam

Question #: 79
Topic #: 3

[All AFE Questions]

In , an adjustment is based on experience of an individual risk during the term of the policy and is generally subject to maximum and minimum premium limits specified in the policy.

ABusiness recordkeeping

BRetrospective premium adjustments

CPremium transaction flow

DAdjusting premiums

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Suggested Answer: A

by Ruthann at Jul 04, 2024, 05:44 AM

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Naomi

29 days ago

Retrospective premium adjustments, huh? Sounds like the insurance company's way of saying, 'We're going to charge you more next year to make up for the discounts we gave you this year.' Gotta love the insurance game, am I right?

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Annette

29 days ago

Ooh, this is a tricky one. I'm gonna go with retrospective premium adjustments, but I have a feeling the exam gods are trying to trick me. Maybe I should just roll a dice and hope for the best.

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Jonell

3 days ago

I think it's retrospective premium adjustments too.

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Melissa

1 months ago

Adjusting premiums, that's my pick. I mean, it's right there in the question, 'an adjustment is based on experience.' Easy peasy, let's move on to the next question!

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Maia

2 days ago

Business recordkeeping is crucial for accurate premium adjustments.

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Silva

9 days ago

I think retrospective premium adjustments might also be important to consider.

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Mary

1 months ago

I agree, adjusting premiums is the way to go.

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Lauran

2 months ago

Hmm, I'm going to have to go with option B. Retrospective premium adjustments sound like the way to go. It's gotta be the one with 'premium' in the name, right? I'm feeling confident about this one.

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Rashida

6 days ago

Yeah, option B definitely stands out as the best choice. It's all about looking back at past performance to make adjustments.

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Leah

12 days ago

I think you're right. Retrospective premium adjustments make sense when it comes to individual risk and policy limits.

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Jerry

1 months ago

I agree, option B does seem like the most logical choice. It's all about adjusting premiums based on past experience.

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Leandro

2 months ago

Retrospective premium adjustments, that's the one! I remember learning about that in my risk management class. It's all about adjusting premiums based on the actual experience during the policy term. Nailed it!

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