The Expected Loss Ratio for a Class of Business Is

question 26

Multiple Choice

The expected loss ratio for a class of business is 60 percent.What change would be indicated in the level of rates under the loss ratio method if the actual loss ratio turned out to be 68 percent?

• A)6.67 percent increase
• B)13.33 percent increase
• C)25.00 percent increase
• D)33.33 percent increase

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Definitions:

Schizophrenia

A chronic and severe mental health disorder characterized by disturbances in thought, perception, and behavior.

Pills

Pills are solid forms of medication that are orally ingested to provide therapeutic effects for various medical conditions.

SMI

Severe Mental Illness, a term that encompasses a range of psychiatric disorders that significantly impair functioning and quality of life.

Functional Impairments

Restrictions or limitations in performing tasks, activities, and roles to levels expected within physical, social, or mental contexts.