1.Life insurance companies do not have ____ as a typical source of funds.

A.Deposit insurance premiums

B.Annuity plans

C.Investment income

D.Life insurance premiums

E.Health insurance premiums

2.A portion of an insurance company's return and risk is effectively reallocated to other insurance companies by _______.

A.Reinsurance

B.Cash flow underwriting

C.Factor insurance

D.Universal insurance

E.Term insurance

3.The data for Friendly Property Casualty Insurance Company is as follows:

loss ratio 75%

expense ratio 31%

dividend ratio 1%

net investment income/premiums earned 8%

Compute Friendly's combined ratio after dividends.

A.32

B.99

C.106

D.107

E.115