SOFE SOFA-CFE Exam - Topic 3 Question 117 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 117
Topic #: 3

Income is usually measured by premium earned while outgo is the sum of losses and loss adjustment expenses incurred, commissions incurred, and an expense fee.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: A

by Chandra at Nov 23, 2025, 08:38 AM

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Nathan

15 hours ago

Totally agree, makes sense.

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Arlean

6 days ago

That's how it's typically defined!

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Frank

11 days ago

A) True, and if you didn't know that, you might as well just give up on this exam now.

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King

16 days ago

B) False, obviously. I mean, who doesn't know the difference between income and outgo in the insurance world? Amateurs.

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Lavonna

21 days ago

Hmm, this one's a real head-scratcher. I'll go with A) True, but only because I'm feeling lucky today.

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Fatima

26 days ago

B) False, because who doesn't love a little bit of insurance industry trivia?

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Frederica

1 month ago

I thought outgo was just losses and expenses, but now I'm questioning if commissions should be included too.

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Annett

1 month ago

I feel like this statement is mostly true, but I can't recall if there are exceptions regarding what counts as outgo.

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Han

1 month ago

I think income is definitely related to premiums earned, but I'm not sure if outgo includes everything mentioned.

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Agustin

2 months ago

I feel pretty confident about this. The question provides a clear definition of the key terms, so I'm going to go with True.

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Rebbecca

2 months ago

Ugh, I'm not sure about this one. The wording is a bit tricky. I'll have to think it through carefully before marking my answer.

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Felton

2 months ago

Okay, I've got this. Income is the premiums earned, and outgo is the total of losses, expenses, and commissions. So the statement is True. Easy peasy!

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Marya

2 months ago

Ah, the age-old question of income vs. outgo. I'll go with B) False, just to keep things interesting.

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Gennie

2 months ago

I'm pretty sure that's the correct answer. Seems straightforward enough.

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Enola

2 months ago

True, that's the standard definition of income and outgo in the insurance industry.

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Armanda

3 months ago

I remember a practice question that discussed income and outgo, and it seemed like the definitions were a bit more complex than this.

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Hoa

3 months ago

Wait, I'm a little confused. Does "outgo" just mean expenses? I want to make sure I understand the terms before I answer.

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Bettina

3 months ago

Hmm, this seems like a pretty straightforward question. I think I'll go with True since the question clearly defines income and outgo for an insurance company.

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Alfred

3 months ago

I’m with you all, true it is!

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