SOFE AFE Exam - Topic 2 Question 85 Discussion

Actual exam question for SOFE's AFE exam

Question #: 85
Topic #: 2

[All AFE Questions]

In which premium income less return premiums arising from policies issued by the entity collecting the premiums and acting as the primary insurance carrier?

AIndirect premium

BDirect premium

CReinsurance premium

DEntity premium

Show Suggested Answer

Suggested Answer: C

by Janey at Sep 16, 2024, 08:54 AM

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Angella

2 months ago

Just to clarify, return premiums are deducted from the total.

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Marguerita

2 months ago

Totally agree, it’s definitely direct premium!

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Sheldon

3 months ago

Wait, is this really how it’s defined? Sounds off.

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Steffanie

3 months ago

I thought reinsurance premium was the answer.

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Delsie

3 months ago

Direct premium is the right term here.

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Luis

3 months ago

I thought "entity premium" was a term we covered, but it doesn't seem to fit the definition given in the question.

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Gabriele

4 months ago

I feel like "reinsurance premium" is related to premiums paid to other insurers, but I'm not confident about that.

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Lenny

4 months ago

I remember practicing a similar question where we had to differentiate between direct and indirect premiums. I think direct premium might be the right choice here.

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Ariel

4 months ago

I think this question is about the types of premiums, but I'm not entirely sure what "indirect" means in this context.

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Leanna

4 months ago

I'm confused by the wording of this question. Can someone explain what they mean by "premium income less return premiums"?

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Salena

4 months ago

Okay, let me see. The key is understanding the difference between direct and indirect premium. I've got a strategy for figuring this out.

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Marvel

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through carefully.

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Carlota

5 months ago

This question seems straightforward, I think the answer is B. Direct premium.

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Alonso

10 months ago

I'm already imagining the insurance humor in this exam. 'What do you call a group of insurance agents? A risk pool!'

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Johnathon

9 months ago

C) Reinsurance premium

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Carman

9 months ago

B) Direct premium

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Felicitas

9 months ago

A) Indirect premium

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Renato

10 months ago

D) Entity premium? Sounds like a made-up option to me. I'm sticking with B).

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Dong

9 months ago

C) Reinsurance premium

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Jolanda

9 months ago

B) Direct premium

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Nickie

9 months ago

A) Indirect premium

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Devorah

10 months ago

Direct premium, obviously! What kind of insurance exam is this, anyway?

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Tawanna

8 months ago

Hmm, not quite. It's direct premium.

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Jeffrey

8 months ago

Indirect premium

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Deeanna

8 months ago

No, it's actually direct premium.

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Mozell

8 months ago

Reinsurance premium

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Elden

10 months ago

That's correct!

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Daryl

10 months ago

Direct premium

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Phuong

10 months ago

I'm not sure, but C) Reinsurance premium also sounds plausible to me.

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Samira

10 months ago

I agree with Izetta, because the entity is collecting the premiums directly.

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Kimbery

10 months ago

Hmm, this one's got me stumped. I'll have to go with my gut and say C) Reinsurance premium.

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Juliann

9 months ago

I would go with C) Reinsurance premium.

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Ernest

10 months ago

I think it's B) Direct premium.

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Izetta

10 months ago

I think the answer is B) Direct premium.

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Justine

11 months ago

This question is a bit tricky, but I'm fairly certain the answer is B) Direct premium.

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Zachary

11 months ago

I'm not sure, but I think it could also be C) Reinsurance premium, as the entity may pass on some of the risk to another insurer.

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Sabina

11 months ago

I agree with Keva, because the entity is collecting the premiums directly.

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Keva

11 months ago

I think the answer is B) Direct premium.

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