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SOFE SOFA-CFE Exam - Topic 2 Question 127 Discussion

The discounted unpaid loss as of the end of any tax year is the present value of losses determined by reference to which of the following factor?
D) All of the above
A) the gross amount
B) the pattern of claims payments
C) the rate of interest

SOFE SOFA-CFE Exam - Topic 2 Question 127 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 127
Topic #: 2
[All SOFA-CFE Questions]

The discounted unpaid loss as of the end of any tax year is the present value of losses determined by reference to which of the following factor?

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Suggested Answer: D

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Stacey
2 hours ago
I believe the answer is D) All of the above, since each factor seems to contribute to how we assess discounted unpaid losses.
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Leanna
5 days ago
I feel like I might be mixing up concepts. I know the gross amount is important, but does it really tie into the present value calculation?
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Lura
10 days ago
I remember practicing a similar question where we discussed how the pattern of claims payments affects the present value. Could it be that all factors are relevant here?
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Edna
16 days ago
I think the present value of losses is influenced by the rate of interest, but I'm not sure if it's just that or if other factors play a role too.
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