Question
a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 14.0 percent, and the ratio of
a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 14.0 percent, and the ratio of commissions and other acquisitions expenses is 18 percent, is this line profitable? b. How does your answer to part (a) change if investment yields of 7 percent are added?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
