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SOFE SOFA-CFE Exam - Topic 7 Question 77 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 77
Topic #: 7
[All SOFA-CFE Questions]

Under which method of calculating unearned premium reserves, the amortization procedure uses the written premiums for the full term of the policy, or for any additional premium paid.

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Suggested Answer: B

by Kaitlyn at Nov 21, 2023, 11:29 AM

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Pete
6 months ago
Just to clarify, it's based on written premiums for the full term.
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Winifred
6 months ago
Wait, are we sure about that? Seems off to me.
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Shizue
6 months ago
Totally agree, Direct is the way to go here.
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Roxanne
7 months ago
I thought it was the In-force method.
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Xenia
7 months ago
It's definitely the Direct method!
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Lachelle
7 months ago
"Effective data-recovery" sounds off to me; I don't remember it being related to unearned premium reserves at all.
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Genevieve
7 months ago
I practiced a similar question, and I think "Indirect" was mentioned as a method, but I can't recall the specifics.
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Armando
7 months ago
I feel like "Direct" could be the right choice, but I need to double-check how the amortization works in that context.
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Scarlet
8 months ago
I think the answer might be "In-force," but I'm not completely sure. I remember something about it being related to how premiums are recognized over time.
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Raymon
8 months ago
I think I've got this one. The question is specifically asking about the amortization procedure, and that method uses the written premiums for the full term of the policy or any additional premium paid. So the answer must be A. Direct.
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Trinidad
8 months ago
I'm drawing a blank on this one. The different options don't seem to clearly match up with the information provided in the question. I may need to come back to this one and see if I can figure it out after reviewing some of the other questions.
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Sage
8 months ago
Okay, I've got an idea. The question is asking about the amortization procedure, so I'm guessing that means it's looking for the method that uses the written premiums as the basis. I'll go with B. Indirect.
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Vashti
8 months ago
Hmm, I'm a little unsure about this one. The wording is a bit confusing - I'm not sure if the question is asking about the full term of the policy or just any additional premium paid. I'll need to think this through carefully.
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Andrew
8 months ago
This seems like a pretty straightforward question about unearned premium reserves. I think the key is to focus on the amortization procedure and what it uses as the basis for the calculation.
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Carma
8 months ago
This question seems straightforward, I think I can handle it.
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Florinda
8 months ago
Hmm, I'm a bit unsure about the capabilities of the ODI SDK. I'll need to review my notes to make sure I understand the differences between the SDK and the regular ODI tool.
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Veronika
1 year ago
Unearned premium reserves? More like 'earned nap time' reserves, am I right? But in all seriousness, 'In-force' sounds like the way to go here.
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Juan
1 year ago
Wait, 'Effective data-recovery'? Is that like when you accidentally delete your insurance policy and have to call the IT guy to get it back? I'm sticking with 'In-force' on this one.
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Leonor
12 months ago
'Indirect' seems like the right choice to me.
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Davida
12 months ago
I'm going with 'Direct' for this one.
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Ivan
12 months ago
I think 'In-force' is the way to go.
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Harrison
1 year ago
I'm not sure, but I think it might be C) In-force because it involves the premiums paid for the policy currently in effect.
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Michell
1 year ago
I agree with Kerry, because the amortization procedure uses the written premiums for the full term of the policy.
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Lamonica
1 year ago
Ah, the age-old question of unearned premium reserves. I'm going with 'In-force' - it just has that 'I mean business' vibe to it, you know? Plus, who doesn't love a good amortization procedure?
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Reita
1 year ago
I'm not sure about 'Effective data-recovery', that doesn't sound right to me.
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Dortha
1 year ago
I'm leaning towards 'Direct' actually. It seems like the most straightforward option.
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Georgeanna
1 year ago
I think 'In-force' sounds solid too. It's all about that business vibe.
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Long
1 year ago
'In-force' does sound pretty official, I see where you're coming from.
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Lynelle
1 year ago
I'm leaning towards 'Indirect', it seems like a solid choice.
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Maynard
1 year ago
I'm leaning towards 'Direct' actually. It just seems more straightforward to me.
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Trevor
1 year ago
I think 'Direct' is the way to go, it just makes sense to me.
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Rodolfo
1 year ago
I think 'In-force' sounds solid too. It's all about that business vibe.
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Eliz
1 year ago
I was thinking 'Direct' since it seems to be the most straightforward approach, but 'In-force' does sound like it aligns better with the description provided. Hmm, tough call.
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Ronny
1 year ago
The amortization procedure using the written premiums for the full term of the policy sounds like the 'In-force' method to me. That makes the most sense in calculating unearned premium reserves.
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Kerry
1 year ago
I think the answer is A) Direct.
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