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SOFE AFE Exam - Topic 3 Question 108 Discussion

Actual exam question for SOFE's AFE exam
Question #: 108
Topic #: 3
[All AFE Questions]

The combined ratio is the sum of it:

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Suggested Answer: D

by Sherron at Jan 05, 2026, 05:16 AM

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Francoise
20 days ago
Definitely D. It covers all aspects of insurance performance.
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Detra
25 days ago
I was torn between A and B, but D seems right.
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Goldie
30 days ago
Agreed, combined ratio includes loss and expense ratios.
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Lavera
1 month ago
I think it's D) All of the above. Makes sense.
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Laquanda
1 month ago
I thought dividends were included too, interesting!
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Aja
2 months ago
The combined ratio is A + B for sure.
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Lucy
2 months ago
Wait, is C really not part of it?
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Brittni
2 months ago
Totally agree, it's just A and B!
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Daniela
2 months ago
It's A and B only, not C.
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Dominga
2 months ago
Option B is the way to go. The combined ratio is like the Voltron of insurance metrics - it's the sum of its parts.
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Makeda
2 months ago
The combined ratio is the sum of all the ratios, including the "ratio of how many times I've fallen asleep during this exam."
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Tu
3 months ago
Option B is the correct answer. The combined ratio is the sum of the loss ratio and expense ratio, not the dividend ratio.
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Christiane
3 months ago
All of the above? Really? The combined ratio is just the loss ratio and expense ratio. Option B is the answer.
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Leontine
3 months ago
I'm pretty sure the combined ratio is the sum of the loss ratio and expense ratio. Option B is the right choice.
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Lyda
4 months ago
The combined ratio is definitely the sum of the loss ratio and expense ratio. Option B is the correct answer.
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Lindy
4 months ago
I feel like I've seen this before, and it seems like the combined ratio should include all those components, so I'm leaning towards D.
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Olive
4 months ago
I definitely recall that the combined ratio includes the loss ratio and expense ratio, but I can't remember if dividends are part of it.
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Barabara
4 months ago
I remember practicing a question similar to this, and I think the answer is D) All of the above, but I could be wrong.
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Evette
4 months ago
I think the combined ratio is related to the loss and expense ratios, but I'm not sure about the dividend ratio.
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Rima
4 months ago
I'm a little confused on this one. I know the combined ratio has to do with insurance, but I can't quite remember the exact definition. I'll guess B and hope for the best.
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Stevie
5 months ago
Okay, I remember learning about the combined ratio in my finance class. It's the sum of the loss ratio and expense ratio, so the answer is definitely B. I feel pretty confident about this one.
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My
5 months ago
Ugh, I'm not too familiar with insurance terms. Let me think this through - the combined ratio has to do with expenses and losses, so it's probably not C or D. I'll go with B to be safe.
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Lashon
5 months ago
Hmm, I think this is asking about insurance industry metrics. The combined ratio is the sum of the loss ratio and expense ratio, so I'm pretty sure the answer is B.
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Jesse
14 days ago
I believe the answer is D. It includes all ratios.
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