SOFE Exam AFE Topic 1 Question 83 Discussion

Actual exam question for SOFE's AFE exam

Question #: 83
Topic #: 1

[All AFE Questions]

The estimated liability includes the amount of money that will be used for future payments of:

AReported claims to insurer

BClaims related to insured events

CClaim adjustment expenses

DAll of the above

Show Suggested Answer

Suggested Answer: D

by Jeanice at Aug 22, 2024, 02:04 PM

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Blair

3 months ago

D, because it's the 'Everything Bagel' of liability estimates. Gotta get those sesame seeds, garlic, and yes, even the claim adjusters in there!

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Alline

3 months ago

All of the above? That's like saying 'the kitchen sink' - how can I not choose that one? Might as well cover all the bases.

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Phuong

1 months ago

Exactly, it's better to include everything rather than risk missing something important.

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Josphine

2 months ago

Choosing 'All of the above' is like a safety net, you can't go wrong with that option.

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Pamella

2 months ago

I agree, it's always best to cover all the bases when it comes to liabilities.

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Darrin

2 months ago

I know right? It's better to be safe than sorry.

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Evette

3 months ago

Hmm, I'm torn between C and D. Claim adjustment expenses are a crucial part, but I suppose D covers everything. Better safe than sorry!

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Dominga

3 months ago

I'd go with B. The claims related to insured events are the core of the liability, the rest are just additional costs.

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Denna

2 months ago

I see your point, but I still think B is the most crucial aspect to consider.

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Royal

2 months ago

So, we all think B is the right choice then?

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Brandee

2 months ago

I think it's D, because all of those factors contribute to the estimated liability.

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Virgina

2 months ago

I agree, those are the main focus when considering liability.

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Iluminada

3 months ago

Yeah, claims related to insured events are definitely important.

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Nohemi

3 months ago

I think B is the best option too.

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Brande

3 months ago

I agree, the claims related to insured events are the most important.

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Geraldo

3 months ago

I believe it's D) All of the above, because the estimated liability should encompass all potential future payments.

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Starr

3 months ago

I'm not sure, but I think it could also be C) Claim adjustment expenses.

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Annice

3 months ago

I agree with Laura, because the estimated liability should cover all types of future payments.

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Dylan

3 months ago

D, of course! The estimated liability covers everything related to claims, including the actual payments and the costs of handling them. It's a comprehensive figure.

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Laticia

3 months ago

Yes, D is the correct choice as it includes reported claims, insured events, and adjustment expenses.

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Anabel

3 months ago

I agree, D covers all aspects of claims and expenses.

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Laura

4 months ago

I think the answer is D) All of the above.

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