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SOFE AFE Exam - Topic 3 Question 109 Discussion

Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are called:
D) Ceded reinsurance premiums
C) Assumed reinsurance premiums
B) Direct premiums
A) Rating premiums

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:

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Suggested Answer: D

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

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Markus
2 hours ago
Agreed! It's all about the balance of premiums.
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Reuben
5 days ago
I feel confident about this one. It's straightforward.
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Alva
10 days ago
Yeah, net premiums is correct! It makes sense.
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Fernanda
16 days ago
I think it's called net premiums.
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Yoko
2 months ago
I thought it was something else, like gross premiums?
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Quentin
2 months ago
Yeah, it's a standard definition in insurance.
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Ressie
2 months ago
Wait, are you sure about that?
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Elouise
3 months ago
Totally agree, that's the correct term!
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Filiberto
3 months ago
It's called net premiums written.
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Eun
3 months ago
Haha, this question is as clear as mud. I'll just guess "reinsurance outflows."
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Hillary
3 months ago
Ooh, I know this one! It's "ceded premiums," right?
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Lanie
3 months ago
Wait, is this a trick question? I'm going with "reinsurance recoveries."
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Janessa
3 months ago
Hmm, I think it's called "reinsurance ceded." Sounds fancy, right?
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Malissa
4 months ago
Reinsurance premiums, duh!
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Erick
4 months ago
I feel like this is a tricky one. I thought it was called "net premiums" too, but what if it’s something else entirely?
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Ciara
4 months ago
I practiced a similar question about premiums last week, and I think the answer could be "net reinsurance premiums," but I could be mixing it up.
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Van
5 months 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
5 months 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
5 months 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
5 months 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
5 months 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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Lonna
6 months ago
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
6 months ago
Hmm, this seems like a straightforward definition question. I'll need to recall the key terms related to reinsurance.
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