What Does the Loss Ratio Measure in Any Particular Year

question 21

Multiple Choice

What does the loss ratio measure in any particular year?

• A)Payouts on policies to premiums earned.
• B)Amount of premiums earned relative to the payout on policies.
• C)Overall underwriting profitability of a line.
• D)Loss adjustment expenses to premiums earned.
• E)Commission and other acquisition costs to premiums written.

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Definitions:

Majority Culture

The dominant cultural practices, values, and beliefs of the primary or most influential group within a society.

Native Culture

The traditions, customs, languages, and artifacts of a group of people who are indigenous to a specific geographical region.

Assimilation

The process in which people understand an experience in terms of their current stage of cognitive development and way of thinking.

Marginalization

The process that occurs when people identify neither with their minority culture nor with the majority culture.