SOFE Exam SOFA-CFE Topic 5 Question 65 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 65
Topic #: 5

What refers to a reinsurance arrangement which involves a 100 percent cession of a company's block of business at a certain time?

Avariations

Bportfolio

Cproportionality

Dpremium reserves

Show Suggested Answer

Suggested Answer: A

by Bok at Feb 04, 2023, 08:10 AM

Limited Time Offer

25%

Off

Get Premium SOFA-CFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Luisa

5 days ago

Hmm, I'm not sure if this is a trick question or what. Is 'proportionality' even a real thing in the reinsurance world? I'm gonna have to dig deeper on that one.

upvoted 0 times

...

Katy

6 days ago

Okay, let's think this through. A 100% cession of a block of business at a certain time... That sounds like a full-on portfolio transfer, right? I'm gonna go with B on this one.

upvoted 0 times

...

Janna

13 days ago

I'm not sure, but I think it could also be C) proportionality, as it involves a proportional transfer of risk.

upvoted 0 times

...

Kanisha

17 days ago

I agree with Jonelle, because a 100 percent cession of a company's block of business is usually referred to as a portfolio.

upvoted 0 times

...

Wow, this one's a real head-scratcher! I'm guessing it's got something to do with the 100% cession, but I'm not sure if that's a good thing or a bad thing. Time to start brushing up on my reinsurance lingo.

upvoted 0 times

...

Jonelle

19 days ago

I think the answer is B) portfolio.

upvoted 0 times

...

SOFE Exam SOFA-CFE Topic 5 Question 65 Discussion

Contribute your Thoughts:

Luisa

Katy

Janna

Kanisha

Delmy

Jonelle