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.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: D

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

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Malcolm

2 months 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

2 months 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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Margret

27 days ago

No problem! Happy to help out with any confusing insurance terms.

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Jacob

30 days ago

I always get tripped up on those types of questions, but you're right, it's False. Thanks for the clarification!

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Marshall

1 months ago

That's right, it's definitely False. They like to make it sound complicated, but it's not so bad once you break it down.

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Berry

2 months ago

False

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Verda

2 months 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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Armanda

22 days ago

Yeah, definitely trying to catch us off guard with that one.

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Coral

1 months ago

I agree, it does seem like a trick question.

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Jodi

2 months ago

False

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Chaya

3 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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Laticia

1 months ago

B) False

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Leah

2 months ago

I'm not sure, let me think about it.

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Chau

2 months ago

A) True

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Zoila

3 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

3 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

2 months ago

Yes, the operating ratio is expenses to earned premiums.

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Malcom

2 months ago

I agree, it's False.

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Audry

2 months ago

B) False

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Elizabeth

2 months ago

A) True

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Shonda

3 months ago

I agree with you, Zoila. So, the statement is true, right?

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Zoila

4 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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