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SOFE SOFA-CFE Exam - 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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Helaine

7 months ago

No way, it can't be D, that's just wrong.

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Marquetta

7 months ago

Wait, is it really that simple?

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Benton

7 months ago

Totally agree, A is the correct answer!

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Brandee

7 months ago

I thought it might be B for a second!

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Cordelia

8 months ago

It's definitely A, claims divided by exposures.

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Malika

8 months ago

I definitely remember that frequency is about claims, but I can't remember if it's just claims or if there's something else involved.

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Lilli

8 months ago

I'm a bit confused about the options. I don't recall anything about coverage extensions being involved in frequency calculations.

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Casandra

8 months ago

I remember practicing a question similar to this, and I think it was about claims divided by exposures, so I might go with A.

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Royce

9 months ago

I think the frequency of loss is related to claims and exposures, but I'm not sure if it's just a simple division.

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Tamar

9 months ago

Okay, let me see... The frequency of loss is related to the number of claims and exposures, but I'm not sure if it's as simple as just dividing them. I'll have to double-check my notes to be sure.

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Octavio

9 months ago

The frequency of loss is a key concept in insurance, so I feel confident I can tackle this. I'll review the options and select the one that best matches the definition.

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Muriel

9 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through carefully to make sure I don't miss anything.

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Ming

9 months ago

This looks straightforward - the frequency of loss is just the number of claims divided by the number of exposures, so I'll go with option A.

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Selma

1 year ago

I'm feeling pretty confident about A. The frequency of loss is a simple ratio of claims to exposures - no need to overcomplicate it.

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Justine

1 year ago

Yeah, A makes the most sense to me too.

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Azzie

1 year ago

I agree, A seems like the most straightforward answer.

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Noel

1 year ago

I believe it's A as well, because it gives a clear ratio of claims to exposures

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Filiberto

1 year 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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Vincenza

1 year ago

A is the most straightforward option for calculating the frequency of loss.

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Susana

1 year ago

Definitely, A is the formula for determining the frequency of loss.

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Lyla

1 year ago

Yeah, A makes the most sense when it comes to calculating the frequency of loss.

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Allene

1 year ago

I agree, A is the correct answer.

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Marti

1 year 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

1 year 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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Rosalind

1 year ago

Definitely, A is the number of claims divided by the number of exposures.

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Joseph

1 year ago

Yeah, A is the correct formula for calculating the frequency of loss.

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Diego

1 year ago

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

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Kati

1 year ago

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

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Alita

1 year ago

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

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Phil

1 year 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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Kip

1 year ago

Yeah, A is the frequency of loss calculation. It's important to consider the number of claims in relation to the number of exposures.

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Cyndy

1 year ago

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

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Annabelle

1 year 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 year 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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Lamar

1 year ago

Calculating the number of claims divided by the number of exposures gives a clear picture of the risk.

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Pansy

1 year ago

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

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Lucille

1 year ago

I agree, option A is the correct answer.

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