SOFE AFE Exam - Topic 1 Question 86 Discussion

Actual exam question for SOFE's AFE exam

Question #: 86
Topic #: 1

[All AFE Questions]

The methods used for the premium rates establishment are:

AManual, judgmental and premium rating

BCommercial, judgmental and merit rating

CManual, experimental and merit rating

DManual, judgmental and merit rating

Show Suggested Answer

Suggested Answer: B

by Louisa at Sep 18, 2024, 09:19 AM

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Onita

3 months ago

Not sure about D, seems too simplistic for premium rates.

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Corrie

3 months ago

B sounds right too, but I lean towards D.

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Gene

3 months ago

Wait, merit rating? Is that really a thing?

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Maryann

4 months ago

Definitely agree with D, that's the standard approach.

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Teddy

4 months ago

I think it's D, manual and judgmental makes sense.

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Ines

4 months ago

I believe the correct answer is D, since "manual" and "judgmental" seem to be standard terms used in premium rate establishment.

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Cory

4 months ago

I'm a bit confused. Is "premium rating" the same as "merit rating"? I can't recall clearly.

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Bettyann

4 months ago

I feel like I've seen a question similar to this before, and I think "merit rating" was mentioned in that context.

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Alberta

5 months ago

I think I remember that "manual" and "judgmental" are definitely part of the methods, but I'm not sure about the third one.

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Mozell

5 months ago

Ugh, I'm drawing a blank on the specifics of these premium rate establishment methods. I'll have to take an educated guess and hope for the best.

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Arthur

5 months ago

Ah, I remember learning about these premium rate methods in class. I think I've got a good handle on this, so I'll confidently select the right answer.

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Terrilyn

5 months ago

Hmm, I'm a bit unsure about this one. The options seem similar, but I'll try to pick out the key differences between them and choose the most appropriate answer.

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Lore

5 months ago

This looks like a straightforward question about premium rate establishment methods. I'll carefully read through the options and select the one that best matches the description.

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Xuan

10 months ago

I'm sure the premium rates for this exam are no joke. Better choose D or you might end up in the red!

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Oretha

8 months ago

User 3: I agree, we don't want to end up with high premiums by choosing the wrong method.

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Desirae

8 months ago

User 2: Yeah, manual, judgmental, and merit rating seem like the most reliable methods.

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Ammie

8 months ago

User 1: I think D is the way to go for setting premium rates.

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Rutha

9 months ago

I agree, let's go with D to avoid any surprises.

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Enola

9 months ago

Yeah, manual, judgmental, and merit rating sound like a solid choice.

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Felicia

9 months ago

I think D is the way to go for the premium rates.

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Shalon

10 months ago

D is the answer, no doubt. But I bet the exam writer had a real 'premium' time coming up with these options!

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Verlene

9 months ago

I chose D too, it just made the most sense out of all the options.

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Carmelina

9 months ago

I also picked D, it seemed like the most logical choice.

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Gail

9 months ago

I agree, D is definitely the answer. Those options were tricky!

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Dan

10 months ago

D is the way to go, folks. Manual and judgmental methods are the industry standard for premium rate setting.

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Stephen

9 months ago

It's important to use manual and judgmental methods for setting premium rates to ensure accuracy.

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Freeman

9 months ago

I think D is the best choice for ensuring accurate premium rates.

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Laine

9 months ago

Manual and judgmental methods are tried and true in the industry.

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Oren

10 months ago

I agree, D seems like the most reliable option for setting premium rates.

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Chara

10 months ago

I think D is the best option too. It's important to have a solid method for setting premium rates.

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Esteban

10 months ago

I agree, D is definitely the way to go. Manual and judgmental methods are tried and true.

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Alesia

10 months ago

Hmm, I was thinking B might be the right answer. But after reconsidering, D is the way to go.

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Olive

10 months ago

I agree with Diane. Option D is the most appropriate choice here.

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Diane

11 months ago

Option D seems like the correct answer. Manual and judgmental methods are commonly used in premium rate establishment.

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Inocencia

11 months ago

I'm not sure about the experimental method, but manual, judgmental, and merit rating seem logical.

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James

11 months ago

I agree with Danica, those methods make sense for establishing premium rates.

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Danica

11 months ago

I think the methods used are manual, judgmental, and premium rating.

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Jess

11 months ago

I'm not sure about that, I think it could also be C) Manual, experimental and merit rating.

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Jeanice

11 months ago

I agree with Novella, because manual and judgmental methods are commonly used in premium rate establishment.

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Novella

11 months ago

I think the answer is D) Manual, judgmental and merit rating.

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