SOFE Exam SOFA-CFE Topic 7 Question 77 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 77
Topic #: 7

Under which method of calculating unearned premium reserves, the amortization procedure uses the written premiums for the full term of the policy, or for any additional premium paid.

ADirect

BIndirect

CIn-force

DEffective data-recovery

Show Suggested Answer

Suggested Answer: B

by Kaitlyn at Nov 21, 2023, 11:29 AM

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Harrison

12 days ago

I'm not sure, but I think it might be C) In-force because it involves the premiums paid for the policy currently in effect.

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Michell

15 days ago

I agree with Kerry, because the amortization procedure uses the written premiums for the full term of the policy.

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Lamonica

15 days ago

Ah, the age-old question of unearned premium reserves. I'm going with 'In-force' - it just has that 'I mean business' vibe to it, you know? Plus, who doesn't love a good amortization procedure?

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Eliz

16 days ago

I was thinking 'Direct' since it seems to be the most straightforward approach, but 'In-force' does sound like it aligns better with the description provided. Hmm, tough call.

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Ronny

18 days ago

The amortization procedure using the written premiums for the full term of the policy sounds like the 'In-force' method to me. That makes the most sense in calculating unearned premium reserves.

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Kerry

25 days ago

I think the answer is A) Direct.

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