Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE AFE Exam - Topic 3 Question 100 Discussion

Actual exam question for SOFE's AFE exam
Question #: 100
Topic #: 3
[All AFE Questions]

Reinsurance is defines as:

Show Suggested Answer Hide Answer
Suggested Answer: A

by Jesusita at Jun 16, 2025, 10:21 AM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Ula
4 months ago
Can someone explain why it's not about revenues?
upvoted 0 times
...
Janine
4 months ago
Wait, is it really about contingent expenses? That seems off.
upvoted 0 times
...
Janella
4 months ago
Reinsurance is all about risk management!
upvoted 0 times
...
Kandis
4 months ago
I think option A sounds right.
upvoted 0 times
...
Dorethea
4 months ago
Definitely not D, that doesn't make sense.
upvoted 0 times
...
Jettie
5 months ago
I definitely studied that reinsurance involves premiums, but I can't remember if it was about expenses or assets.
upvoted 0 times
...
Merri
5 months ago
I feel like option D sounds familiar, but I can't recall if it's about selling or paying. This is tricky!
upvoted 0 times
...
Kiley
5 months ago
I remember practicing a question similar to this, and I think it was about assuming contingent liabilities, which might relate to option A.
upvoted 0 times
...
Brent
5 months ago
I think reinsurance is about transferring risk, but I'm not sure if it's specifically about expenses or revenues.
upvoted 0 times
...
Renato
5 months ago
This is a good test of our understanding of key insurance industry terms. I'll carefully consider each option and select the one that most accurately captures the essence of reinsurance.
upvoted 0 times
...
Willis
6 months ago
I'm drawing a blank on the definition of reinsurance. I'll have to go back and review my notes before I can confidently answer this.
upvoted 0 times
...
Jamie
6 months ago
Okay, I think I've got this. Reinsurance is when an insurance company pays another party to take on some of their risk, in exchange for a premium. Option A looks like the best fit.
upvoted 0 times
...
Almeta
6 months ago
Hmm, I'm a bit unsure about this one. The wording is a bit tricky, and I want to make sure I understand the concept of reinsurance before choosing an answer.
upvoted 0 times
...
Janey
6 months ago
This seems like a straightforward definition question. I'll read through the options carefully and select the one that best matches the description of reinsurance.
upvoted 0 times
...
Raul
9 months ago
Haha, C is like selling your problems to someone else! I wish I could do that with my student loans.
upvoted 0 times
Millie
8 months ago
B) to pay another party to assume a stream of contingent revenues, for an interest over the expected cost
upvoted 0 times
...
Leslee
8 months ago
Haha, C is like selling your problems to someone else! I wish I could do that with my student loans.
upvoted 0 times
...
Jennifer
9 months ago
A) to pay another party to assume a stream of contingent expenses, for a premium over the expected cost
upvoted 0 times
...
...
Ressie
10 months ago
I thought reinsurance was when you sell your insurance to someone else? D sounds more like that to me.
upvoted 0 times
...
Elmer
10 months ago
I'm not sure, but I think it's either A or D. Reinsurance is definitely about transferring risk, but I'm not sure about the discount part.
upvoted 0 times
...
Herminia
10 months ago
A is the correct answer. Reinsurance is when an insurance company pays another party to assume a stream of contingent expenses, like claims, in exchange for a premium.
upvoted 0 times
Lindy
9 months ago
Yes, you're right. It's all about transferring risk to another party in exchange for a premium.
upvoted 0 times
...
Laticia
9 months ago
I think A is the correct answer. Reinsurance is when an insurance company pays another party to assume a stream of contingent expenses.
upvoted 0 times
...
...
Ciara
10 months ago
I agree with Joni, option A makes sense. It's all about managing risk and costs in the insurance industry.
upvoted 0 times
...
Joni
10 months ago
I think the answer is A, because reinsurance is about transferring risk to another party for a premium.
upvoted 0 times
...

Save Cancel