SOFE Exam SOFA-CFE Topic 6 Question 79 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 79
Topic #: 6

SAP, an insurance company is given an option of recognizing salvage and subrogation upon receipt or accruing the estimated amount of salvage and subrogation related to ultimate claim costs by reducing the related reserves.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Theodora at Dec 27, 2023, 08:56 PM

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Galen

2 months ago

I'd have to go with B) False on this one. Accruing the estimated amount sounds like the more efficient and organized approach. Plus, it'll keep the bean counters happy!

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Cyril

2 months ago

B) False, all the way! I mean, who wants to deal with the hassle of tracking down every single salvage and subrogation payment? Accruing the estimated amount is the way to go, like a boss!

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Edgar

10 days ago

A) True

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Ressie

28 days ago

B) False, all the way! I mean, who wants to deal with the hassle of tracking down every single salvage and subrogation payment? Accruing the estimated amount is the way to go, like a boss!

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Trevor

1 months ago

B) False, all the way! I mean, who wants to deal with the hassle of tracking down every single salvage and subrogation payment? Accruing the estimated amount is the way to go, like a boss!

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Iraida

1 months ago

B) False

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Scarlet

1 months ago

B) False

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Jovita

2 months ago

A) True

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Phil

2 months ago

A) True

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Buddy

2 months ago

Ah, the age-old question of 'to accrue or not to accrue?' I'll have to go with B) False on this one. It's better to be proactive than reactive, especially in the insurance world.

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Onita

2 months ago

I'm pretty sure the correct answer is B) False. Accruing the estimated amount seems like a more prudent approach for the insurance company.

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Deeann

1 months ago

Actually, the correct answer is B) False. Accruing the estimated amount is the more prudent approach.

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Tawna

1 months ago

I agree with you, it's A) True. It's an option for the insurance company.

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Nadine

2 months ago

I think the answer is A) True. The company can recognize salvage and subrogation upon receipt.

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Salome

3 months ago

Hmm, this is a tricky one. I'd go with B) False, as it makes more sense to accrue the estimated amount of salvage and subrogation rather than waiting for the actual receipt.

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Ilda

1 months ago

That's a good point, but accruing the estimated amount can also help in better financial planning and management.

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Annelle

2 months ago

But wouldn't waiting for the actual receipt provide a more accurate representation of the company's finances?

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Alpha

2 months ago

I agree with you, it does make sense to accrue the estimated amount to reflect the true financial position.

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Johnna

3 months ago

I think it's A) True, because recognizing salvage and subrogation upon receipt is a common practice in insurance companies.

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Shoshana

3 months ago

I see your point, but I think it's A) True because recognizing salvage and subrogation upon receipt can provide a more accurate financial picture.

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Valentin

3 months ago

I disagree, I believe the answer is B) False.

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Shoshana

3 months ago

I think the answer is A) True.

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Marshall

3 months ago

I think it's true because recognizing salvage and subrogation upon receipt can help in accurately reflecting the financial position of the insurance company.

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Annett

3 months ago

B) False

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Marshall

3 months ago

A) True

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