SOFE SOFE Certifications SOFE-CFE Questions & Answers

• Question 271:

  The frequency of loss is the:

  A. The number of claims divided by the number of exposures

  B. The number of exposures minus the number of loss

  C. The number of coverage extensions divided by the number of exposures

  D. The number of claims multiplied by the number of retroactive data

  Correct Answer: A

• Question 272:

  Which of the following is the characteristic of an actuarially sound loss reserve?

  A. It is for a defined group of claims.

  B. It is as of a particular valuation date.

  C. It is for liabilities that existed on a particular accounting date.

  D. All of the above

  Correct Answer: D

• Question 273:

  What is the estimated liability for claims reported but not yet recorded?

  A. claims-adjustment reserve

  B. liability-for-claim reserve

  C. claims-in-transit reserve

  D. incurred-claim reserve

  Correct Answer: C

• Question 274:

  For a given financial statement, what should represent an insurer's best estimate of the liability?

  A. reasonable reserve

  B. carried reserve

  C. indicated reserve

  D. formula reserve

  Correct Answer: B

• Question 275:

  ________________ is typically either the date of report to the insurer or the earlier of the dates of report to the insurer or the policyholder.

  A. Record-made date

  B. Claims-made date

  C. Transaction-made date

  D. Report-made date

  Correct Answer: B

• Question 276:

  The total of the individual estimates of outstanding liability for recorded claims is the:

  A. case reserve

  B. occurrence reserve

  C. adjustment reserve

  D. engaging reserve

  Correct Answer: A

• Question 277:

  The cutoff date for data used in the estimation of loss and loss expense liabilities is called:

  A. valuation date

  B. loss reserve date

  C. accident date

  D. expense adjustment date

  Correct Answer: A

• Question 278:

  The date an insurer or its agent is informed of a claim is known as:

  A. claim date

  B. account date

  C. report date

  D. testimony date

  Correct Answer: C

• Question 279:

  An insurance company incurs ___________ as soon as an insured incident occurs.

  A. loss credit

  B. loss liability

  C. remediation

  D. reconcile asset

  Correct Answer: B

• Question 280:

  The date used to define the group of claims to be included in estimated loss liabilities is called:

  A. expense adjustment date

  B. loss reserve date

  C. financing date

  D. accounting date

  Correct Answer: D