6. a) If an insurer had a combined ratio of 1.00 and their expenses were .30 what are the losses?

b) If an insurer had a combined ratio of .90 would they want to increase premiums, lower premiums or keep them the same? Explain why. Is this insurer in healthy financial shape or do they have work to do?

c) If an insurer had a combined ratio of 1.10 and their losses were .75 what are their expenses?

d) If an insurer had a combined ratio of 1.05 but wanted to get it lower and not raise premiums would cutting expenses help? Yes or no and explain why.

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7. a) Agents and Brokers are similar but there are differences. Please list three similarities and three differences.

b) Can a producer be both and agent and a broker for the same client? What would they have to make sure to do?