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SOFE AFE Exam - Topic 3 Question 39 Discussion

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?
B) Paying commission basis
A) Billing basis
C) Item basis
D) Bushiness costs

SOFE AFE Exam - Topic 3 Question 39 Discussion

Actual exam question for SOFE's AFE exam
Question #: 39
Topic #: 3
[All AFE Questions]

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?

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Suggested Answer: B

by Rhea at May 05, 2022, 05:34 PM

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Corrinne
8 months ago
C seems a bit vague, not sure about that one.
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Daniel
8 months ago
A makes the most sense, straightforward process!
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Rodolfo
9 months ago
Wait, is this really how it works? Sounds off.
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Sherrell
9 months ago
I think it's actually B, commissions are key here.
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Launa
9 months ago
Definitely A, that's how billing works.
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Nickolas
9 months ago
I feel like Item basis could be the right choice, but I’m not confident. We had a similar question in our last review session.
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Lucy
9 months ago
I remember something about agents collecting premiums, but I can't recall if it's called Paying commission basis or something else.
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Chauncey
9 months ago
I think the answer might be A, Billing basis, but I'm not completely sure. It sounds familiar from our practice questions.
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My
9 months ago
I don’t think it’s Bushiness costs; that doesn’t seem to fit. I’m leaning towards A, but I wish I had studied this part more.
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Rosendo
9 months ago
Hmm, this looks like a tricky one. I'll need to carefully review the hub and spoke architecture and the Cloud Router configuration to figure out the best approach.
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Annmarie
9 months ago
This question seems straightforward. I think the key is to focus on the purpose of a custom BPMN editor stencil.
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Cristy
9 months ago
This question seems straightforward, I think I can handle it.
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Keva
10 months ago
I'm a little confused by the wording of this question. Can someone explain the difference between the options a bit more? I want to make sure I understand before I select an answer.
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Delisa
1 year ago
Wait, hold on, 'Bushiness costs'? I didn't realize we were grading insurance policies on their ability to keep the bushes trimmed. Someone's got their priorities all mixed up here.
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Kaitlyn
1 year ago
D) Bushiness costs
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Johnetta
1 year ago
C) Item basis
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Tuyet
1 year ago
B) Paying commission basis
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Margurite
1 year ago
A) Billing basis
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Alex
1 year ago
Hold up, 'Bushiness costs'? Really? I think someone's trying to pull a fast one on us with that one. Nice try, but I'm gonna have to pass on that one.
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Dante
1 year ago
C) Item basis
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Portia
1 year ago
B) Paying commission basis
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Kallie
1 year ago
A) Billing basis
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Scarlet
1 year ago
D) Bushiness costs
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Evelynn
1 year ago
C) Item basis
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Marjory
1 year ago
B) Paying commission basis
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Kenneth
1 year ago
A) Billing basis
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Steffanie
1 year ago
Nah, nah, 'Item basis' has gotta be the winner. I mean, how else would the agent keep track of all those individual policies and their corresponding premiums? This is clearly the way to go.
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Ivette
1 year ago
Yeah, I agree. It seems like the most organized option for handling individual policies.
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Matthew
1 year ago
I think 'Item basis' is the best choice too. It makes sense for keeping track of everything.
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Merlyn
1 year ago
I'm not sure, but I think it might be C) Item basis. Can someone explain why it's not that option?
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Alonso
1 year ago
I'm gonna go with 'Paying commission basis' on this one. It just makes sense that the agent would get their cut before sending the rest to the entity, you know?
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Kasandra
1 year ago
I agree with Dolores, because the agent collects the premiums and subtracts commissions before remitting the net premiums.
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Enola
1 year ago
Hmm, 'Billing basis' sounds like the right answer here. The agent collects the premiums directly from the insureds, and then remits the net premiums after deducting their commission. Seems like a pretty straightforward process.
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Truman
1 year ago
Definitely, 'Billing basis' ensures transparency in the premium collection process.
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Kristine
1 year ago
It's important for the agent to handle the premiums properly to ensure accurate payments.
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Mable
1 year ago
Yes, the agent collects the premiums and deducts their commission before remitting the net premiums.
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Royal
1 year ago
I think you're right, 'Billing basis' is the correct answer.
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Dolores
1 year ago
I think the answer is B) Paying commission basis.
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