SOFE Exam SOFA-CFE Topic 6 Question 79 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 79
Topic #: 6

SAP, an insurance company is given an option of recognizing salvage and subrogation upon receipt or accruing the estimated amount of salvage and subrogation related to ultimate claim costs by reducing the related reserves.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Theodora at Dec 27, 2023, 08:56 PM

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Salome

7 days ago

Hmm, this is a tricky one. I'd go with B) False, as it makes more sense to accrue the estimated amount of salvage and subrogation rather than waiting for the actual receipt.

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Shoshana

7 days ago

I see your point, but I think it's A) True because recognizing salvage and subrogation upon receipt can provide a more accurate financial picture.

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Valentin

8 days ago

I disagree, I believe the answer is B) False.

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Shoshana

10 days ago

I think the answer is A) True.

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Marshall

16 days ago

I think it's true because recognizing salvage and subrogation upon receipt can help in accurately reflecting the financial position of the insurance company.

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Annett

17 days ago

B) False

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Marshall

18 days ago

A) True

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