Question
Refer to the following information for these questions: Annual Data Thousands of Dollars -Premiums earned $25,000 -Losses incurred $17,000 -Expenses/commissions $7,500 -Dividends paid to policyholders
Refer to the following information for these questions:
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
1) Which of the following is true?
A) The combined ratio afer dividends is 105%. This indicates that premiums are sufficient to generate profitability.
B) The combined ratio after dividends is 105%. This indicates that premiums are nor sufficient to generate profitability.
D) The combined ratio afer dividends is 101%. This indicates that premiums are sufficient to generate profitability.
E) The combined ratio after dividends is 101%. This indicates that premiums are nor sufficient to generate profitability.
Which of the following is true?
A) The operating ratio is 98.6%. This indicates that the line is not profitable after including investment income on premiums.
B) The operating ratio is 98.6%. This indicates that the line is profitable after including investment income on premiums.
C) The operating ratio is 94.6%. This indicates that the line is not profitable after including investment income on premiums.
E) The operating ratio is 94.6%. This indicates that the line is profitable after including investment income on premiums.
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
Government Audit An Effective Tool For The Anti Corruption Struggle In The New Era Of Chinas Governance
Authors: Bowen Zou, Yanzhe Dr. Zhang, Yang Dr. ZHAO, Jian Dr. Zhang
1st Edition
1844646068, 978-1844646067
