SOFE
SOFA-CFE · Question #24
SOFA-CFE Question #24: Real Exam Question with Answer & Explanation
The correct answer is C. Both A and B. See the full explanation below for the reasoning.
Question
The concept of unearned premium is important to the business of insurance for which principal reason?
Options
- Athe concept deals with the recognition of revenue over the period of time in which a policy is in-
- Bstate insurance laws require each insurer to establish a liability equal to its unearned premiums.
- CBoth A and B
- DNeither A nor B
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