SOFE SOFA-CFE Exam - Topic 3 Question 117 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 117
Topic #: 3

Income is usually measured by premium earned while outgo is the sum of losses and loss adjustment expenses incurred, commissions incurred, and an expense fee.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Chandra at Nov 23, 2025, 08:38 AM

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Colton

1 month ago

True, but definitions can vary.

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Jin

1 month ago

B seems right. Outgo includes more than that.

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Shaquana

1 month ago

I vote for A. It's clear in the context.

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Staci

2 months ago

Not so sure. Could be misleading.

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Albina

2 months ago

Agreed, it's a standard definition.

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Yolando

2 months ago

I think it's true. Makes sense.

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Roxanne

2 months ago

Yup, true! Standard in the industry.

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Terrilyn

2 months ago

Premiums and losses, classic definition.

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Hildegarde

2 months ago

Wait, are we sure about that? Seems off.

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Nathan

3 months ago

Totally agree, makes sense.

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Arlean

3 months ago

That's how it's typically defined!

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Frank

3 months ago

A) True, and if you didn't know that, you might as well just give up on this exam now.

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King

4 months ago

B) False, obviously. I mean, who doesn't know the difference between income and outgo in the insurance world? Amateurs.

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Lavonna

4 months ago

Hmm, this one's a real head-scratcher. I'll go with A) True, but only because I'm feeling lucky today.

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Fatima

4 months ago

B) False, because who doesn't love a little bit of insurance industry trivia?

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Frederica

4 months ago

I thought outgo was just losses and expenses, but now I'm questioning if commissions should be included too.

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Annett

4 months ago

I feel like this statement is mostly true, but I can't recall if there are exceptions regarding what counts as outgo.

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Han

4 months ago

I think income is definitely related to premiums earned, but I'm not sure if outgo includes everything mentioned.

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Agustin

5 months ago

I feel pretty confident about this. The question provides a clear definition of the key terms, so I'm going to go with True.

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Rebbecca

5 months ago

Ugh, I'm not sure about this one. The wording is a bit tricky. I'll have to think it through carefully before marking my answer.

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Felton

5 months ago

Okay, I've got this. Income is the premiums earned, and outgo is the total of losses, expenses, and commissions. So the statement is True. Easy peasy!

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Marya

5 months ago

Ah, the age-old question of income vs. outgo. I'll go with B) False, just to keep things interesting.

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Gennie

5 months ago

I'm pretty sure that's the correct answer. Seems straightforward enough.

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Enola

5 months ago

True, that's the standard definition of income and outgo in the insurance industry.

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Armanda

6 months ago

I remember a practice question that discussed income and outgo, and it seemed like the definitions were a bit more complex than this.

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Hoa

6 months ago

Wait, I'm a little confused. Does "outgo" just mean expenses? I want to make sure I understand the terms before I answer.

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Bettina

6 months ago

Hmm, this seems like a pretty straightforward question. I think I'll go with True since the question clearly defines income and outgo for an insurance company.

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