Financial CFE Exam (page: 12)
Financial Certified Examiner (CFE)
Updated on: 15-Feb-2026

Viewing Page 12 of 85

Which of the following is the component of loss and loss adjustment liabilities are used in meeting the challenge?

  1. case reserves
  2. supplement reserves
  3. reopened claim reserves
  4. All of the above

Answer(s): D



Loss reserves that are not established on a claim number basis are identified as bulk reserves.

  1. True
  2. False

Answer(s): A



The bulk reserves are used when statistical analysis indicates that the ultimate development of the original reserves will be deficient are called:

  1. Claims-made reserves
  2. Supplemental reserves
  3. Reopened claim reserves
  4. Claims-in-transit

Answer(s): B



Which policy covers losses reported during the policy period rather than when they occurred?

  1. case reserve
  2. case average
  3. claims-made
  4. reported claim

Answer(s): C



is the sale of damaged goods, for which the insured has been indemnified by the company.

  1. Salvage
  2. Loss offset
  3. Reevaluation
  4. None of the above

Answer(s): A



Viewing Page 12 of 85



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