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SOFE SOFA-CFE Exam - Topic 5 Question 65 Discussion

Posted by Bok on Feb 04, 2023 at 08:10 AM

What refers to a reinsurance arrangement which involves a 100 percent cession of a company's block of business at a certain time?

Suggested Answer: A

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36 comments · newest first
DU
Dudley 11 months ago
Yup, portfolio is the right term here!
TO
Tom 11 months ago
Definitely a portfolio arrangement, no doubt about it.
LO
Lovetta 12 months ago
Wait, 100 percent cession? That sounds risky!
TO
Tomas 12 months ago
Totally agree, it's a common practice in the industry.
MA
Madonna 12 months ago
It's called a portfolio transfer!
RE
Reena 1 year ago
I'm a bit confused; I thought "variations" could also apply here, but now I'm leaning towards "portfolio" after thinking it over.
LA
Lashawnda 1 year ago
This sounds familiar! I practiced a question like this before, and I believe it was about portfolio arrangements.
MA
Maynard 1 year ago
I remember studying something about 100 percent cessions, and I feel like "portfolio" is the right answer, but I could be mixing it up with another concept.
SU
Suzi 1 year ago
I think this might be related to portfolio transfers, but I'm not entirely sure if that's the exact term used in reinsurance.
SY
Sylvia 1 year ago
Okay, I think I've got this. Overseas investment by a domestic company would be a capital account transaction, not a current account one. Expenditure by an overseas visitor would be a credit, not a debit. I'm pretty sure the right answer is C - a flow of company profits to the parent company.
LA
Lavonda 1 year ago
I'm a bit confused by the question. It's not clear to me how a canvas app or the Virtual Agent would help achieve the goal of monitoring customer feedback and taking action. I'll need to think this through more carefully.
HA
Halina 1 year ago
Ah, I've got this! Creating a new role and assigning the necessary permissions is definitely one option. And copying an existing role and modifying it is the other way to go.
AR
Arlene 1 year ago
I feel pretty confident about this one. The key is that the existing VM-based vulnerability tooling doesn't apply to the containerized environment, so we need a container-specific solution. Setting up Container Analysis (option A) is the best way to address that requirement.
AR
Art 1 year ago
This question is making my brain hurt. Maybe I should just start guessing and hope for the best. At least that way, I'll have a 25% chance of getting it right!
LA
Laurene 1 year ago
↳ replying to Art
I'm not sure, but I'll go with premium reserves.
TE
Terrilyn 1 year ago
↳ replying to Art
I'm leaning towards proportionality.
TR
Troy 1 year ago
↳ replying to Art
I think it might be portfolio.
AH
Ahmad 1 year ago
Hold up, are we talking about the premium reserves here? Because if so, that might just be the right answer. D is looking pretty good to me.
LU
Luisa 1 year ago
Hmm, I'm not sure if this is a trick question or what. Is 'proportionality' even a real thing in the reinsurance world? I'm gonna have to dig deeper on that one.
MA
Maurine 1 year ago
↳ replying to Luisa
User 4: I'm not sure, but 'variations' could also make sense.
ER
Erick 1 year ago
↳ replying to Luisa
User 3: 'Proportionality' sounds like it could be a valid option.
JU
Jules 1 year ago
↳ replying to Luisa
User 2: I'm leaning towards 'premium reserves' as the answer.
ER
Ernest 1 year ago
↳ replying to Luisa
User 1: I think 'portfolio' might be the right answer.
RI
Ricarda 1 year ago
↳ replying to Luisa
D) premium reserves
GI
Gianna 1 year ago
↳ replying to Luisa
C) proportionality
VE
Verda 1 year ago
↳ replying to Luisa
B) portfolio
YE
Yen 1 year ago
↳ replying to Luisa
A) variations
KA
Katy 1 year ago
Okay, let's think this through. A 100% cession of a block of business at a certain time... That sounds like a full-on portfolio transfer, right? I'm gonna go with B on this one.
JA
Janna 1 year ago
I'm not sure, but I think it could also be C) proportionality, as it involves a proportional transfer of risk.
KA
Kanisha 2 years ago
I agree with Jonelle, because a 100 percent cession of a company's block of business is usually referred to as a portfolio.
DE
Delmy 2 years ago
Wow, this one's a real head-scratcher! I'm guessing it's got something to do with the 100% cession, but I'm not sure if that's a good thing or a bad thing. Time to start brushing up on my reinsurance lingo.
LA
Latrice 1 year ago
↳ replying to Delmy
D) premium reserves
KA
Karina 1 year ago
↳ replying to Delmy
C) proportionality
DO
Dona 1 year ago
↳ replying to Delmy
B) portfolio
MO
Mona 1 year ago
↳ replying to Delmy
A) variations
JO
Jonelle 2 years ago
I think the answer is B) portfolio.
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