SOFE Exam SOFA-CFE Topic 1 Question 100 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 100
Topic #: 1

The bulk reserves are used when statistical analysis indicates that the ultimate development of the original reserves will be deficient are called:

AClaims-made reserves

BSupplemental reserves

CReopened claim reserves

DClaims-in-transit

Show Suggested Answer

Suggested Answer: C

by Kris at Sep 17, 2024, 02:32 PM

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Almeta

1 months ago

Ha! Claims-in-transit, really? That's a good one. No, it's gotta be B) Supplemental reserves. The question is pretty straightforward.

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Melodie

19 days ago

I think it's A) Claims-made reserves.

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Lucy

2 months ago

Definitely B) Supplemental reserves. I remember learning about those in my insurance classes. The name just clicks with the description.

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Alison

8 days ago

Supplemental reserves provide an extra layer of protection for the insurance company's financial stability.

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Tiffiny

10 days ago

It's important to have those reserves in place to cover any unexpected shortfalls in the future.

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Cecilia

13 days ago

Reopened claim reserves are for claims that were closed but then reopened for further review.

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Alverta

19 days ago

Claims-made reserves are different, they are set for known claims that have not been reported yet.

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Dalene

24 days ago

I agree, B) Supplemental reserves are set aside for potential deficiencies in the original reserves.

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Carole

1 months ago

I agree, B) Supplemental reserves are set aside for potential deficiencies in the original reserves.

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Argelia

2 months ago

But supplemental reserves are specifically set aside for deficiencies in original reserves, so I think it makes more sense.

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Mariko

2 months ago

Hmm, I was thinking D) Claims-in-transit, but now that I read the question again, that doesn't seem to fit. Supplemental reserves makes more sense.

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Joseph

1 months ago

Claims-in-transit doesn't really match the description, so I think Supplemental reserves is the correct answer.

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Jules

1 months ago

I agree, Supplemental reserves seems like the right choice.

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Irene

2 months ago

I disagree, I believe the answer is A) Claims-made reserves.

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Argelia

2 months ago

I think the answer is B) Supplemental reserves.

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German

2 months ago

I'm pretty sure the answer is B) Supplemental reserves. That's the one that matches the description of being used when the original reserves are found to be insufficient.

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Sunny

23 days ago

Claims-in-transit are for claims that are still being processed.

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Shad

1 months ago

Reopened claim reserves are used for specific cases.

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Daisy

1 months ago

Claims-made reserves are different from Supplemental reserves.

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Mari

2 months ago

I think you're right, B) Supplemental reserves are used when the original reserves are deficient.

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