Which of the following statements is (are) true with respect to catastrophe bonds? The bonds are issued by the US. Government The bonds have relatively high interest (coupon) rates. I only II only both I and II neither I nor II Which of the following statements about treaty reinsurance is true? The ceding insurer can choose which business falling within the scope of the treaty it wishes to reinsure. It protects the reinsurer by requiring the ceding insurer to charge adequate premiums. The reinsurer is required to underwrite each individual applicant that is reinsured. The reinsurer must accept all business that falls within the scope of the treaty. Which of the following statements about the combined ratio is true? The combined ratio considers the company's investment income. A combined ratio less than 1 (or 100 percent) indicates that an underwriting loss has occurred. A combined ratio greater than I (or 100 percent) means an underwriting loss has occurred. It is equal to the loss ratio minus the expense ratio. Part II: Short Answer Questions JKL Insurance Company reported the following information on its accounting statements last What was JKL's combined ratio last year? What was JKL's expense ratio last year? What was JKL's combined ratio last year? Bob has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $ 3,000,000 liability judgment if policy A provides $ 500,000 of coverage, polity B provides $1, 500,000 of coverage, and policy C provides $3,000,000 of coverage