SOFE Exam AFE Topic 1 Question 91 Discussion

Actual exam question for SOFE's AFE exam

Question #: 91
Topic #: 1

[All AFE Questions]

For reinsurance assumed, the concepts analogous to attachment points and limits.

ASeverity Levels

BFrequency Levels

CPolicy levels

DRetention levels

Show Suggested Answer

Suggested Answer: D

by Teddy at Nov 19, 2024, 01:56 AM

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Alysa

4 months ago

I'm not sure, but I think it could also be severity levels. Can someone explain why retention levels are the correct answer?

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Scot

4 months ago

Hmm, this is a tricky one. I'm going to go with D, but I hope the exam doesn't have any jokes about reinsurance - that would be a total re-nightmare!

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Domonique

3 months ago

User 3: Yeah, I'm going with D too.

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Craig

4 months ago

User 2: I agree, retention levels make sense in this context.

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Leah

4 months ago

User 1: I think it's D, retention levels.

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Brittni

4 months ago

I agree with Deeann, retention levels make sense in the context of reinsurance assumed.

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Salley

4 months ago

Definitely D. Attachment points and limits are related to the insurer's own retention, not policy levels or severity/frequency levels.

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Lashaun

3 months ago

Yes, D is the most relevant option when considering reinsurance assumed and retention levels.

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Pete

3 months ago

I think D is the best choice, it aligns with the concept of attachment points and limits.

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Earleen

4 months ago

That makes sense, attachment points and limits are definitely related to retention levels.

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Gearldine

4 months ago

I agree, D is the correct answer. It's about the insurer's retention levels.

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Deeann

4 months ago

I think the concepts analogous to attachment points and limits are related to retention levels.

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Daren

4 months ago

I think the answer is D. Retention levels are the concepts analogous to attachment points and limits in reinsurance assumed.

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Nobuko

3 months ago

Got it, thanks for clarifying.

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Norah

3 months ago

Yes, exactly. They determine how much risk the reinsurer will take on.

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Barrett

3 months ago

So, retention levels are like the thresholds for when reinsurance coverage kicks in?

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Judy

3 months ago

I agree, retention levels are similar to attachment points and limits in reinsurance assumed.

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