SOFE AFE Exam - Topic 3 Question 108 Discussion

Actual exam question for SOFE's AFE exam

Question #: 108
Topic #: 3

[All AFE Questions]

The combined ratio is the sum of it:

Aloss ratio

Bexpense ratio

Cdividend ratio

DAll of the above

Show Suggested Answer

Suggested Answer: D

by Sherron at Jan 05, 2026, 05:16 AM

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Francoise

2 months ago

Definitely D. It covers all aspects of insurance performance.

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Detra

2 months ago

I was torn between A and B, but D seems right.

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Goldie

3 months ago

Agreed, combined ratio includes loss and expense ratios.

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Lavera

3 months ago

I think it's D) All of the above. Makes sense.

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Laquanda

3 months ago

I thought dividends were included too, interesting!

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Aja

3 months ago

The combined ratio is A + B for sure.

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Lucy

3 months ago

Wait, is C really not part of it?

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Brittni

3 months ago

Totally agree, it's just A and B!

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Daniela

4 months ago

It's A and B only, not C.

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Dominga

4 months ago

Option B is the way to go. The combined ratio is like the Voltron of insurance metrics - it's the sum of its parts.

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Makeda

4 months ago

The combined ratio is the sum of all the ratios, including the "ratio of how many times I've fallen asleep during this exam."

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Tu

5 months ago

Option B is the correct answer. The combined ratio is the sum of the loss ratio and expense ratio, not the dividend ratio.

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Christiane

5 months ago

All of the above? Really? The combined ratio is just the loss ratio and expense ratio. Option B is the answer.

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Leontine

5 months ago

I'm pretty sure the combined ratio is the sum of the loss ratio and expense ratio. Option B is the right choice.

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Lyda

5 months ago

The combined ratio is definitely the sum of the loss ratio and expense ratio. Option B is the correct answer.

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Lindy

5 months ago

I feel like I've seen this before, and it seems like the combined ratio should include all those components, so I'm leaning towards D.

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Olive

6 months ago

I definitely recall that the combined ratio includes the loss ratio and expense ratio, but I can't remember if dividends are part of it.

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Barabara

6 months ago

I remember practicing a question similar to this, and I think the answer is D) All of the above, but I could be wrong.

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Evette

6 months ago

I think the combined ratio is related to the loss and expense ratios, but I'm not sure about the dividend ratio.

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Rima

6 months ago

I'm a little confused on this one. I know the combined ratio has to do with insurance, but I can't quite remember the exact definition. I'll guess B and hope for the best.

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Stevie

6 months ago

Okay, I remember learning about the combined ratio in my finance class. It's the sum of the loss ratio and expense ratio, so the answer is definitely B. I feel pretty confident about this one.

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My

6 months ago

Ugh, I'm not too familiar with insurance terms. Let me think this through - the combined ratio has to do with expenses and losses, so it's probably not C or D. I'll go with B to be safe.

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Lashon

7 months ago

Hmm, I think this is asking about insurance industry metrics. The combined ratio is the sum of the loss ratio and expense ratio, so I'm pretty sure the answer is B.

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Laquanda

10 days ago

I think it's B, but I see the point about D.

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Olga

16 days ago

I agree with Jesse, it's definitely D.

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Jesse

2 months ago

I believe the answer is D. It includes all ratios.

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