Question
2. Refer to the following information for this question Annual Data Thousands of Dollars Premiums earned $25,000 Losses incurred $17,000 Expenses/Commissions $7,500 Dividends paid to
2. Refer to the following information for this question
Annual Data | Thousands of Dollars |
Premiums earned | $25,000 |
Losses incurred | $17,000 |
Expenses/Commissions | $7,500 |
Dividends paid to policyholders | $750 |
Investment income on premiums | $1,600 |
Which of the following is true?
Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $7,500.
Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $26,750.
Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $17,500.
Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $18,350.
Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $16,250.
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