nerdexam
SOFE

AFE · Question #119

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?

The correct answer is C. Item basis. See the full explanation below for the reasoning.

Question

In which account current, for individual policies, the agent collects the premiums directly from the insureds, subtracts his or her commissions and remits the net premiums due to entity?

Options

  • ABilling basis
  • BPaying commission basis
  • CItem basis
  • DBusiness costs

How the community answered

(44 responses)
  • A
    11% (5)
  • B
    2% (1)
  • C
    80% (35)
  • D
    7% (3)

Community Discussion

No community discussion yet for this question.

Full AFE Practice