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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Selma

1 months 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

21 days ago

Yeah, A makes the most sense to me too.

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Azzie

27 days ago

I agree, A seems like the most straightforward answer.

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Noel

1 months ago

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

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Filiberto

2 months 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

14 days ago

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

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Susana

21 days ago

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

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Lyla

26 days ago

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

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Allene

1 months ago

I agree, A is the correct answer.

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Marti

2 months 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

2 months 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

30 days ago

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

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Joseph

2 months ago

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

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Diego

2 months ago

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

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Kati

2 months ago

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

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Alita

2 months ago

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

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Phil

3 months 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 months 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

2 months ago

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

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Annabelle

2 months 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

3 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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Lamar

1 months ago

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

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Pansy

2 months ago

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

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Lucille

2 months ago

I agree, option A is the correct answer.

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