Which of the Following Statements About the Combined Ratio Is

question 31

Multiple Choice

Which of the following statements about the combined ratio is true?

• A)It is equal to the loss ratio minus the expense ratio.
• B)A combined ratio greater than 1 (or 100 percent)means an underwriting loss has occurred.
• C)The combined ratio considers the company's investment income.
• D)A combined ratio less than 1 (or 100 percent)indicates that an underwriting loss has occurred.

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Definitions:

Inimitability

The quality of being impossible to copy or imitate, often contributing to a competitive advantage.

Organizational Behavior

studies how individuals and groups interact within a company and how these interactions affect the organization's functioning.

MacroEconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on broad phenomena like inflation, national income, and unemployment.

Employee Connections

The relationships or networks developed between employees within an organization, which can impact morale, communication, and teamwork.