True or False

1. Insurance companies are always certain that the loss reserves established are sufficient to pay all losses and expenses. (T/F)

2. If an insurance company reports a loss ratio of 65%, it means that they did not charge sufficient premiums. (T/F)

3. An independent adjustor represents the insured, and can be hired to settle disputed claims. (T/F)

4. The claims settlement process begins with a notice of loss. (T/F)

5. Designed for major loss exposures, excess of loss agreement allows the insurer to transfer catastrophic losses that exceeds its retention limit to the reinsurer. (T/F)