All of the Following Statements About the Combined Ratio Are

question 37

Multiple Choice

All of the following statements about the combined ratio are true EXCEPT

• A)It is equal to the loss ratio plus the expense ratio.
• B)A combined ratio greater than 1 (or 100 percent)means an underwriting loss has occurred.
• C)The combined ratio does not consider investment income.
• D)A combined ratio less than 1 (or 100 percent)indicates that an underwriting loss has occurred.

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Definitions:

High Incomes

Earnings that significantly exceed the average or median levels, often associated with increased purchasing power and economic status.

Efficiency Wages

Wages that are deliberately set above the market equilibrium level to increase worker productivity and efficiency.

Employee Effort

The level of exertion, both physical and mental, that workers contribute to their job tasks to achieve organizational goals.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or attractive to others, often influenced by cultural standards and personal preferences.