SOFE SOFA-CFE Exam - Topic 8 Question 66 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 66
Topic #: 8

Reinsurance is the acceptance by one insurer, known as the reinsurer or the ______________, of all or part of the risk of loss of another (the original) insurer, called the _______________.

Aassuming company, insurance company

Bassuming company, ceding company

Cinsurance company, assuming company

DReimbursement Company, primary company

Show Suggested Answer

Suggested Answer: B

by Louvenia at Mar 01, 2023, 07:37 AM

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Dominga

7 months ago

Just learned about this, but it makes sense!

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Anthony

7 months ago

I thought it was "insurance company" and "assuming company."

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Zoila

7 months ago

Wait, is "Reimbursement Company" even a thing? Sounds off.

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Cheryll

7 months ago

Totally agree with that!

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Carline

7 months ago

It's definitely "assuming company" and "ceding company."

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Rory

8 months ago

I'm pretty confident that "assuming company" goes in the first blank, but I need to double-check if "ceding company" is right for the second.

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Marjory

8 months ago

I keep mixing up the terms; I thought the original insurer was called the "assuming company" too.

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Margot

8 months ago

I remember practicing a similar question, and I think "ceding company" fits there.

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Devon

8 months ago

I think the first blank is "assuming company," but I'm not completely sure about the second one.

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The time plan on the entire promotion? The time policy of the promotion? I'm really not sure what those options even mean in this context. I'm leaning towards C, but I'm kind of shooting in the dark here.

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Vi

8 months ago

This one seems pretty straightforward. I'm pretty confident the answer is C - lobby.

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Anissa

8 months ago

I'm a bit unsure, but I think when you bind VLAN 10 to the interface, it may change the VLAN ID associated with it.

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Cornell

8 months ago

I think the best choice is A. There was a similar question in our last mock exam, and it emphasized maintaining image integrity for specific uses.

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Fallon

1 year ago

Hmm, I wonder if the reinsurer ever feels like they're the ones getting 'reinsured' by the ceding company. Talk about a complex game of hot potato!

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Alishia

1 year ago

B) assuming company, ceding company - got it! Now, if only I could remember the difference between facultative and treaty reinsurance...

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Toi

1 year ago

D) Reimbursement Company, primary company? Really? That's a completely different concept. I think the exam writer needs to stick to the actual terminology used in reinsurance.

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Coral

11 months ago

D) Reimbursement Company, primary company? Really? That's a completely different concept. I think the exam writer needs to stick to the actual terminology used in reinsurance.

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Gerald

11 months ago

C) insurance company, assuming company? Yes, that's the correct terminology used in reinsurance.

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Louvenia

11 months ago

C) insurance company, assuming company

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Billye

11 months ago

B) assuming company, ceding company

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Emilio

11 months ago

C) insurance company, assuming company

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Mirta

12 months ago

B) assuming company, ceding company

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Aileen

12 months ago

A) assuming company, insurance company

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Milly

12 months ago

A) assuming company, insurance company

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Shaquana

1 year ago

I was a bit confused at first, but now I understand. The reinsurer is the one who takes on the risk, while the original insurer is the one who cedes the risk. Nice and straightforward!

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Omega

1 year ago

B) assuming company, ceding company

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Trina

1 year ago

That's correct! The assuming company is the reinsurer, and the insurance company is the original insurer.

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Arlette

1 year ago

A) assuming company, insurance company

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Beckie

1 year ago

I'm not sure about that. I think it might be C) insurance company, assuming company.

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Sharan

1 year ago

The correct answer is B) assuming company, ceding company. This is because the reinsurer is the assuming company that takes on the risk from the original insurer, known as the ceding company.

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