Financial SOFA-CFE Exam
Certified Financial iner (Page 11 )

Updated On: 9-Feb-2026

Which of the following is NOT the loss category?

  1. paid losses
  2. losses reserved for future payment
  3. losses incurred
  4. subsidiary losses

Answer(s): D



Which of the following is the loss characteristic?

  1. known vs. unknown
  2. reported vs. unreported
  3. short-tail vs. long-tail
  4. All of the above

Answer(s): D



The reserve for a reported claim that is established by an adjuster or a formula based on the company's loss experience is called:

  1. loss reserve
  2. case reserve
  3. adjustment reserve
  4. predefined reserve

Answer(s): B



Which practices will vary based on company claim procedures, the line of business and size of claim.

  1. loss reserve
  2. claim reporting
  3. Loss reporting
  4. portfolio reserve

Answer(s): B



The claims that have occurred prior to the company's balance sheet date, were not reported, and therefore are not recorded by the company are known as:

  1. Unknown losses
  2. Unclaimed losses
  3. Unrecorded losses
  4. Long-tail losses

Answer(s): A






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