SOFE Exam SOFA-CFE Topic 8 Question 66 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 66
Topic #: 8

Reinsurance is the acceptance by one insurer, known as the reinsurer or the ______________, of all or part of the risk of loss of another (the original) insurer, called the _______________.

Aassuming company, insurance company

Bassuming company, ceding company

Cinsurance company, assuming company

DReimbursement Company, primary company

Show Suggested Answer

Suggested Answer: B

by Louvenia at Mar 01, 2023, 07:37 AM

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Fallon

28 days ago

Hmm, I wonder if the reinsurer ever feels like they're the ones getting 'reinsured' by the ceding company. Talk about a complex game of hot potato!

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Alishia

29 days ago

B) assuming company, ceding company - got it! Now, if only I could remember the difference between facultative and treaty reinsurance...

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Toi

1 months ago

D) Reimbursement Company, primary company? Really? That's a completely different concept. I think the exam writer needs to stick to the actual terminology used in reinsurance.

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Emilio

21 hours ago

C) insurance company, assuming company

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Mirta

10 days ago

B) assuming company, ceding company

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Aileen

12 days ago

A) assuming company, insurance company

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Milly

19 days ago

A) assuming company, insurance company

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Shaquana

2 months ago

I was a bit confused at first, but now I understand. The reinsurer is the one who takes on the risk, while the original insurer is the one who cedes the risk. Nice and straightforward!

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Omega

1 months ago

B) assuming company, ceding company

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Trina

1 months ago

That's correct! The assuming company is the reinsurer, and the insurance company is the original insurer.

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Arlette

1 months ago

A) assuming company, insurance company

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Beckie

2 months ago

I'm not sure about that. I think it might be C) insurance company, assuming company.

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Sharan

2 months ago

The correct answer is B) assuming company, ceding company. This is because the reinsurer is the assuming company that takes on the risk from the original insurer, known as the ceding company.

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