Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If the loss ratio on a line of property insurance is 76 percent, the loss adjustment expense is 13.4 percent, and the ratio of commissions
If the loss ratio on a line of property insurance is 76 percent, the loss adjustment expense is 13.4 percent, and the ratio of commissions and other acquisitions expenses is 15 percent, is this line profitable?
A. Yes, because the combined ratio is 104.4%
B. No, because the combined ratio is 104.4%
C. No, because the combined ratio is less than 104.4%
D. No, because the combined ratio is less than 104.4%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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