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SOFE Exam AFE Topic 1 Question 83 Discussion

Actual exam question for SOFE's AFE exam
Question #: 83
Topic #: 1
[All AFE Questions]

The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.

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Suggested Answer: D

by Jeanice at Aug 22, 2024, 02:04 PM

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Malcolm
14 days ago
Is the operating ratio the ratio of how much coffee the underwriters drink to how much paperwork they have to fill out? That would make more sense to me!
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Francesco
16 days ago
Aha, a classic insurance exam question! Gotta love when they try to confuse us with the terminology. Definitely False, my friends.
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Verda
18 days ago
Ha, nice try! Trying to slip in a trick question, are we? I'm going with False on this one.
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Jodi
3 days ago
False
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Chaya
1 months ago
Hmm, this seems tricky. Is the operating ratio really the combined ratio minus investment income? I'll have to think about that one.
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Leah
1 days ago
I'm not sure, let me think about it.
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Chau
21 days ago
A) True
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Zoila
2 months ago
Yes, that's correct. The operating ratio is indeed the combined ratio less than the ratio of investment income to earned premiums.
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Christiane
2 months ago
I'm pretty sure this is False. The operating ratio is the ratio of expenses to earned premiums, not the combined ratio less investment income.
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Leonora
15 days ago
Yes, the operating ratio is expenses to earned premiums.
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Malcom
18 days ago
I agree, it's False.
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Audry
22 days ago
B) False
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Elizabeth
28 days ago
A) True
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Shonda
2 months ago
I agree with you, Zoila. So, the statement is true, right?
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Zoila
2 months ago
I think the operating ratio is the combined ratio less than the ratio of investment income to earned premiums.
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