SOFE SOFA-CFE Exam - Topic 1 Question 100 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 100
Topic #: 1

The bulk reserves are used when statistical analysis indicates that the ultimate development of the original reserves will be deficient are called:

AClaims-made reserves

BSupplemental reserves

CReopened claim reserves

DClaims-in-transit

Show Suggested Answer

Suggested Answer: C

by Kris at Sep 17, 2024, 02:32 PM

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Vallie

6 months ago

I’m surprised it’s called Supplemental reserves, sounds odd.

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Mitzie

6 months ago

I thought it was Claims-in-transit, that's interesting!

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Leatha

6 months ago

Wait, are we sure it's not Claims-made reserves?

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Elli

7 months ago

Totally agree, it's definitely Supplemental reserves!

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Tamala

7 months ago

It's B, Supplemental reserves.

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Olive

7 months ago

Claims-in-transit seems off to me. I don't remember studying that term in relation to reserves at all.

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Nicolette

7 months ago

I feel like we had a practice question that mentioned reopened claim reserves, but I don't think that's what this is asking for.

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Tamie

7 months ago

I remember something about claims-made reserves, but I can't recall if that's the right term for this specific situation.

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Willodean

8 months ago

I think the answer might be B, Supplemental reserves, but I'm not completely sure. It sounds familiar from our last review session.

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Jules

8 months ago

I'm confident that the answer is B. Supplemental reserves are used to cover any shortfall in the original reserves, which is exactly what the question is describing.

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Refugia

8 months ago

Okay, I've got this. The key is understanding that the question is asking about reserves used when the original reserves are deficient. That points to supplemental reserves as the correct answer.

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Leanna

8 months ago

Hmm, I'm a bit unsure about the difference between supplemental reserves and claims-made reserves. I'll need to think this through carefully.

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Veronique

8 months ago

This seems like a straightforward question about insurance reserves. I'll need to carefully review the definitions of the different reserve types to determine the correct answer.

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Almeta

1 year ago

Ha! Claims-in-transit, really? That's a good one. No, it's gotta be B) Supplemental reserves. The question is pretty straightforward.

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Dick

11 months ago

I agree with the user comment, it's B) Supplemental reserves.

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Luke

11 months ago

No way, it's definitely C) Reopened claim reserves.

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Melodie

12 months ago

I think it's A) Claims-made reserves.

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Lucy

1 year ago

Definitely B) Supplemental reserves. I remember learning about those in my insurance classes. The name just clicks with the description.

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Alison

12 months ago

Supplemental reserves provide an extra layer of protection for the insurance company's financial stability.

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Tiffiny

12 months ago

It's important to have those reserves in place to cover any unexpected shortfalls in the future.

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Cecilia

12 months ago

Reopened claim reserves are for claims that were closed but then reopened for further review.

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Alverta

12 months ago

Claims-made reserves are different, they are set for known claims that have not been reported yet.

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Dalene

1 year ago

I agree, B) Supplemental reserves are set aside for potential deficiencies in the original reserves.

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Carole

1 year ago

I agree, B) Supplemental reserves are set aside for potential deficiencies in the original reserves.

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Argelia

1 year ago

But supplemental reserves are specifically set aside for deficiencies in original reserves, so I think it makes more sense.

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Mariko

1 year ago

Hmm, I was thinking D) Claims-in-transit, but now that I read the question again, that doesn't seem to fit. Supplemental reserves makes more sense.

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Joseph

1 year ago

Claims-in-transit doesn't really match the description, so I think Supplemental reserves is the correct answer.

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Jules

1 year ago

I agree, Supplemental reserves seems like the right choice.

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Irene

1 year ago

I disagree, I believe the answer is A) Claims-made reserves.

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Argelia

1 year ago

I think the answer is B) Supplemental reserves.

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German

1 year ago

I'm pretty sure the answer is B) Supplemental reserves. That's the one that matches the description of being used when the original reserves are found to be insufficient.

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