SOFE Exam SOFA-CFE Topic 1 Question 64 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 64
Topic #: 1

[All SOFA-CFE Questions]

An insurance company incurs ___________ as soon as an insured incident occurs.

Aloss credit

Bloss liability

Cremediation

Dreconcile asset

Show Suggested Answer

Suggested Answer: B

by Elvera at Jan 07, 2023, 06:19 PM

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3 days ago

D) reconcile asset? Really? I don't think that makes any sense in the context of insurance claims. Gotta go with B on this one.

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5 days ago

I'm pretty sure the correct answer is B) loss liability. Insurance companies have to set aside funds to cover claims as soon as an incident occurs.

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7 days ago

I think it could also be A) loss credit, as the company may have to adjust their financial statements.

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8 days ago

I agree with Franklyn, because the insurance company has to pay out for the insured incident.

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11 days ago

The answer is B) loss liability.

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