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Financial SOFA-CFE Exam
Certified Financial iner (Page 12 )

Updated On: 9-Feb-2026
Page 12 of 85
PDF with 416 Questions

The development and payment patterns associated with reported claims can be used to estimate the other loss liability components commonly called:

  1. Incurred and reported
  2. Unclaimed and losses
  3. Incurred but not reported
  4. Uninsured and not reported

Answer(s): C



The formula to calculate Losses incurred for the accounting period is:

  1. Incurred losses = (Losses paid to date) / (Loss reserve prior period) + (loss reserve final period)
  2. Incurred losses = (Losses paid to date) _ (Loss reserve prior period) + (loss reserve current period)
  3. Incurred losses = (Annual Losses) _ (Losses paid to date) + (loss reserve current period)
  4. Incurred losses = (Losses paid to date) + (Loss reserve prior period) _ (loss reserve current period)

Answer(s): B



What is the total amount of checks, wire transfers or drafts issued in settlement of claims for the risks insured by the company?

  1. Traditional settlements
  2. Losses paid
  3. Secured claims payment
  4. Short-tail claims payment

Answer(s): B



Since the periodic payments agreed to by the parties are scheduled into the future, the arrangement is often referred to as:

  1. Traditional claim settlement
  2. Losses paid settlement
  3. Secured claims settlement
  4. structured claims settlement

Answer(s): D



The purpose of the ______________ is to provide equitable settlements with claimants as well as to control the insurer's claim costs from economic and social inflation.

  1. Annuity method
  2. Casualty control method
  3. periodic payment method
  4. Loss reserves

Answer(s): A






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