SOFE Exam AFE Topic 1 Question 83 Discussion

Actual exam question for SOFE's AFE exam

Question #: 83
Topic #: 1

[All AFE Questions]

The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.

ATrue

BFalse

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Suggested Answer: D

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

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11 hours ago

Yes, that's correct. The operating ratio is indeed the combined ratio less than the ratio of investment income to earned premiums.

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3 days ago

I'm pretty sure this is False. The operating ratio is the ratio of expenses to earned premiums, not the combined ratio less investment income.

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3 days ago

I agree with you, Zoila. So, the statement is true, right?

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11 days ago

I think the operating ratio is the combined ratio less than the ratio of investment income to earned premiums.

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