SOFE AFE Exam - Topic 3 Question 109 Discussion

Actual exam question for SOFE's AFE exam

Question #: 109
Topic #: 3

[All AFE Questions]

Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:

DCeded reinsurance premiums

CAssumed reinsurance premiums

BDirect premiums

ARating premiums

Show Suggested Answer

Suggested Answer: D

by Belen at Jan 27, 2026, 09:22 PM

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Van

5 days ago

I remember something about reinsurance and premiums, but I can't recall the exact phrase. Was it something like ceded premiums?

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Ozell

10 days ago

I think this might be related to net premiums, but I'm not entirely sure if that's the right term.

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Eden

15 days ago

Ah, I think I know the answer! It's called the "net reinsurance cost." That's the amount we pay for reinsurance coverage after accounting for the return premiums we receive.

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Aja

20 days ago

I've got this! The term we're looking for is the "net reinsurance premiums." That's the difference between the outgoing premiums and the return premiums from reinsurance.

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Queen

25 days ago

Ugh, I'm a bit stuck on this one. Reinsurance terminology is not my strongest area. I'll have to make an educated guess and hope for the best.

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Okay, let me think this through. Outgoing premiums are the payments we make to reinsurers, and return premiums are the amounts they pay back to us. I'm guessing the term we're looking for is something related to that.

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Chandra

1 month ago

Hmm, this seems like a straightforward definition question. I'll need to recall the key terms related to reinsurance.

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SOFE AFE Exam - Topic 3 Question 109 Discussion

Contribute your Thoughts:

Van

Ozell

Eden

Aja

Queen

Lonna

Chandra