Question
1.Referred to the Following information for this question: Annual Data Thousands of Dollars Premiums earned $25,000 Losses Incurred $17,000 Expenses/Commission $7,500 Dividends paid to policyholders
1.Referred to the Following information for this question:
Annual Data Thousands of Dollars
Premiums earned $25,000
Losses Incurred $17,000
Expenses/Commission $7,500
Dividends paid to policyholders $750
Investment income on premiums $1,600
Which of the Following is True?
The combined ratio after dividends is 105%. This indicates that premiums are sufficient to generate profitability.
The combined ratio after dividends is 105%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 101%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 101%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 98%. This indicates that premiums are sufficient to generate profitability.
(Please show step by step)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
