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SOFE Exam SOFA-CFE Topic 8 Question 66 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 66
Topic #: 8
[All SOFA-CFE Questions]

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 _______________.

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Suggested Answer: B

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

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Fallon
12 days 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
13 days 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
17 days 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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Milly
3 days ago
A) assuming company, insurance company
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Shaquana
1 months 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
20 days ago
B) assuming company, ceding company
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Trina
23 days ago
That's correct! The assuming company is the reinsurer, and the insurance company is the original insurer.
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Arlette
26 days ago
A) assuming company, insurance company
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Beckie
2 months ago
I'm not sure about that. I think it might be C) insurance company, assuming company.
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Sharan
2 months 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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Denny
9 days ago
That's right! The ceding company transfers part of its risk to the assuming company through reinsurance.
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Noel
26 days ago
So the correct answer is B) assuming company, ceding company.
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Ben
1 months ago
Yes, the assuming company is the reinsurer that takes on the risk from the ceding company.
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Jestine
1 months ago
I didn't know that reinsurance involves an assuming company and a ceding company.
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Lanie
2 months ago
I agree with Lashandra. The reinsurer is the assuming company and the original insurer is the ceding company.
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Lashandra
2 months ago
I think the answer is B) assuming company, ceding company.
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