Which of the following statements about the combined ratio is true?
A) It is equal to the loss ratio minus the expense ratio.
B) A combined ratio greater than 1 (or 100 percent) means an underwriting loss has occurred.
C) The combined ratio considers the company's investment income.
D) A combined ratio less than 1 (or 100 percent) indicates an underwriting loss has occurred.
Answer: B
You might also like to view...
Describe the five ways companies use database marketing
What will be an ideal response?
Social media analytics analyzes text flowing across the Internet, including unstructured text from blogs and messages.
Answer the following statement true (T) or false (F)
Good packaging
A. can lower distribution costs. B. can make a product easier or safer to use. C. can make products easier to handle and display. D. can be an important promotional tool. E. All these answers are correct.
Which of the following would NOTÂ be personally liable for the debts of the business?
A. a sole proprietor B. a partner in a general partnership C. an S corp shareholder D. a partner in a joint venture