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SOFE Exam AFE 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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Steffanie
1 days 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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Merlyn
3 days 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
3 days 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
5 days ago
I agree with Dolores, because the agent collects the premiums and subtracts commissions before remitting the net premiums.
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Enola
8 days 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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Dolores
9 days ago
I think the answer is B) Paying commission basis.
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