SOFE AFE Exam - Topic 4 Question 114 Discussion

Actual exam question for SOFE's AFE exam

Question #: 114
Topic #: 4

[All AFE Questions]

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

ATrue

BFalse

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Suggested Answer: A

by Julieta at May 14, 2026, 03:11 AM

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Kanisha

1 day ago

I think the operating ratio is related to the combined ratio, but I'm not sure about the investment income part.

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Ira

7 days ago

I’m pretty confident that the operating ratio is related to premiums, but I’m not certain about the investment income part. It seems like a tricky question!

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Rikki

12 days ago

I feel like the statement is misleading. The operating ratio usually focuses on expenses versus premiums, but I might be mixing it up with something else.

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Mona

17 days ago

I remember a practice question that mentioned the operating ratio, but I can't recall the exact formula. Was it supposed to include investment income or not?

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Precious

2 months ago

I think the operating ratio does involve investment income, but I'm not completely sure if it's calculated like this.

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