SOFE AFE Exam - Topic 3 Question 18 Discussion

Actual exam question for SOFE's AFE exam

Question #: 18
Topic #: 3

Liabilities are recognized for known claims when sufficient information has been developed to indicate the involvement of a specific insurance policy.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Kirk at May 05, 2022, 06:08 PM

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Stephen

7 months ago

I thought it was more complicated than that.

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Keneth

7 months ago

Yep, definitely true. It's standard practice.

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Charlene

7 months ago

Wait, are we sure about that? Seems a bit vague.

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Daniel

7 months ago

Totally agree, it's all about the specifics!

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Candida

7 months ago

That's true, liabilities need to be recognized.

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Colby

8 months ago

This sounds familiar; I feel like we had a practice question that discussed when to recognize liabilities for insurance claims.

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Jacob

8 months ago

I'm not entirely sure, but I remember something about recognizing liabilities only when the claims are probable and measurable.

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Alex

8 months ago

I think this statement is true because liabilities should be recognized when we have enough information about the claims.

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Sheridan

8 months ago

I’m leaning towards false, but I can't recall the exact details. I need to double-check the criteria for recognizing liabilities.

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Junita

8 months ago

Ah, I remember learning about this in class. FixedVolume is the one that's not supported, so I'll select option D.

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Jenifer

8 months ago

I'm a bit confused by the wording of the question. I'll have to read it a few times to make sure I understand.

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