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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Veronika

1 months ago

Unearned premium reserves? More like 'earned nap time' reserves, am I right? But in all seriousness, 'In-force' sounds like the way to go here.

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Juan

1 months ago

Wait, 'Effective data-recovery'? Is that like when you accidentally delete your insurance policy and have to call the IT guy to get it back? I'm sticking with 'In-force' on this one.

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Leonor

16 days ago

'Indirect' seems like the right choice to me.

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Davida

19 days ago

I'm going with 'Direct' for this one.

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Ivan

20 days ago

I think 'In-force' is the way to go.

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Harrison

2 months 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

2 months 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

2 months 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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Reita

24 days ago

I'm not sure about 'Effective data-recovery', that doesn't sound right to me.

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Dortha

26 days ago

I'm leaning towards 'Direct' actually. It seems like the most straightforward option.

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Georgeanna

28 days ago

I think 'In-force' sounds solid too. It's all about that business vibe.

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Long

1 months ago

'In-force' does sound pretty official, I see where you're coming from.

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Lynelle

1 months ago

I'm leaning towards 'Indirect', it seems like a solid choice.

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Maynard

1 months ago

I'm leaning towards 'Direct' actually. It just seems more straightforward to me.

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Trevor

1 months ago

I think 'Direct' is the way to go, it just makes sense to me.

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Rodolfo

2 months ago

I think 'In-force' sounds solid too. It's all about that business vibe.

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Eliz

2 months 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

2 months 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

3 months ago

I think the answer is A) Direct.

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