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SOFE AFE Exam - Topic 2 Question 87 Discussion

Actual exam question for SOFE's AFE exam
Question #: 87
Topic #: 2
[All AFE Questions]

Spreading of risks among insurance entities is called:

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Suggested Answer: C

by Stefanie at Sep 18, 2024, 04:13 AM

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Tesha
3 months ago
Consortium act sounds familiar, but it's not the answer here.
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Josephine
3 months ago
Wait, is risk diffusion even a real term?
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Mitsue
3 months ago
Reinsurance is the right term, no doubt!
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Holley
4 months ago
I thought it was syndication?
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Marsha
4 months ago
It's definitely called reinsurance!
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Nada
4 months ago
I practiced a question similar to this, and I think reinsurance was the answer. It makes sense in the context of insurance.
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Shenika
4 months ago
I feel like risk diffusion sounds familiar, but I can't recall if that's the correct term for spreading risks among entities.
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Kathrine
4 months ago
I remember something about syndication being related to sharing risks, but it might not be the right term for insurance.
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Audria
5 months ago
I think it's reinsurance, but I'm not completely sure. We did cover that in class.
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Lezlie
5 months ago
This is a tricky one. I'm not super familiar with the insurance industry terminology. I'll have to eliminate the options that don't sound right and go with my best guess on reinsurance.
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Brittni
5 months ago
Okay, let me think this through step-by-step. The question is asking about how insurance entities spread their risks. The options mention reinsurance, syndication, consortium act, and risk diffusion. I'm pretty sure reinsurance is the correct answer, as that's the common way insurers spread their risks.
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Jacinta
5 months ago
Hmm, I'm not totally sure about this one. I know it has something to do with how insurance companies manage their risks, but I'm not familiar with the specific terms. I'll have to think this through carefully.
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Avery
5 months ago
I'm pretty confident this is asking about reinsurance, which is the spreading of risks among insurance entities. I'll go with option A.
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Rima
10 months ago
Consortium act? Really? Sounds like something out of a legal thriller. I'll play it safe with reinsurance.
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Haydee
8 months ago
Consortium act does sound like it's straight out of a legal drama, but it's actually reinsurance that spreads risks among insurance entities.
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Rolande
8 months ago
Syndication is more about pooling resources, not spreading risks.
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Erick
9 months ago
I agree, reinsurance is the way to go for spreading risks.
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Ardella
10 months ago
Ah, the age-old question of insurance jargon. A) Reinsurance gets my vote - it's the industry standard for risk distribution.
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Arlie
8 months ago
Yes, reinsurance is definitely the spreading of risks among insurance entities.
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Jesusa
8 months ago
A) Reinsurance
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Elvis
8 months ago
Actually, reinsurance is more common in the insurance world.
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Floyd
9 months ago
B) Syndication
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Yolando
9 months ago
I agree, reinsurance is the way to go.
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Penney
9 months ago
A) Reinsurance
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Andra
10 months ago
D) Risk Diffusion? More like 'Risk Confusion' if you ask me! I'll stick with the classic reinsurance.
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Helene
9 months ago
D) Risk Diffusion
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Lezlie
9 months ago
C) Consortium act
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Audra
9 months ago
B) Syndication
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Latosha
9 months ago
A) Reinsurance
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Silva
10 months ago
I agree with Cecilia. Reinsurance helps spread risks among multiple insurers to prevent heavy losses.
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Donte
10 months ago
I'm going with B) Syndication. It just sounds like the right term for risk sharing among insurance entities.
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Hollis
9 months ago
Thanks for the clarification. I'll go with A) Reinsurance as well.
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Susy
9 months ago
Actually, I think you're right. A) Reinsurance is the correct term for spreading risks among insurance entities.
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Bette
10 months ago
I see your point, but I still believe B) Syndication is the correct term for this concept.
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Elroy
10 months ago
I think it's actually A) Reinsurance. That's the term used for spreading risks among insurance entities.
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Cecilia
10 months ago
I think it's A) Reinsurance because it involves transferring risks to another insurance company.
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Ligia
10 months ago
A) Reinsurance
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Helga
10 months ago
I agree with Tarra, A) Reinsurance makes sense to spread risks among insurance entities.
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Tarra
10 months ago
I think it's A) Reinsurance because it involves transferring risks to another insurance company.
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Laurel
11 months ago
Reinsurance seems like the most logical choice here. Spreading risks among insurers is what reinsurance is all about.
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Amalia
10 months ago
B) Syndication
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Alease
10 months ago
I agree, reinsurance is the correct answer.
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Jules
10 months ago
A) Reinsurance
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Glenna
11 months ago
A) Reinsurance
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