SOFE Exam SOFA-CFE Topic 1 Question 111 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 111
Topic #: 1

[All SOFA-CFE Questions]

The frequency of loss is the:

AThe number of claims divided by the number of exposures

BThe number of exposures minus the number of loss

CThe number of coverage extensions divided by the number of exposures

DThe number of claims multiplied by the number of retroactive data

Show Suggested Answer

Suggested Answer: A

by Nickole at May 01, 2025, 01:55 PM

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Filiberto

13 days ago

Haha, D is just a weird combination of random insurance terms. The frequency of loss is all about the number of claims and exposures, so A is the clear winner.

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Marti

16 days ago

I'm not sure, but I think it's C) The number of coverage extensions divided by the number of exposures

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Joesph

18 days ago

D looks like a trick question. The frequency of loss has nothing to do with the number of coverage extensions or retroactive data. A is the way to go.

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Diego

2 days ago

I agree, D does seem like a trick question. A makes more sense.

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Kati

21 days ago

I think it's A too, because it makes sense to calculate loss frequency that way

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Alita

27 days ago

A) The number of claims divided by the number of exposures

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Phil

30 days ago

I'm torn between A and B, but I think A is the correct answer. The frequency of loss should be based on the number of claims, not the number of exposures minus the number of loss.

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Cyndy

16 days ago

I agree, A makes more sense. It's a ratio of claims to exposures.

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Annabelle

18 days ago

I think A is the correct answer. It's the number of claims divided by the number of exposures.

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Pete

1 months ago

Option A seems like the most logical choice. The frequency of loss is the number of claims divided by the number of exposures, which makes perfect sense.

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Pansy

21 days ago

Yes, it's important to calculate the frequency of loss accurately.

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Lucille

22 days ago

I agree, option A is the correct answer.

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