Fire and Allied Lines as Well as Homeowner's Have the Lowest

question 50

Multiple Choice

Fire and allied lines as well as homeowner's have the lowest break-even combined ratio levels because:

• A)the expenses and claims are expected to be low.
• B)the level of investment income is expected to be low.
• C)the premiums rates are high.
• D)the level of investment income is expected to be high.
• E)the expenses and claims are expected to be high.

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Definitions:

Retained Earnings

Profits that a company keeps after dividends are paid, which can be used for reinvestment in the business or to pay down debt.

Liabilities

Financial obligations or debts a company owes to external parties.

Cash

Liquid assets held by an entity that can be immediately used for transactions.

Ex-dividend Date

The specific date on which shares of a company stop coming with the right to receive the most recently declared dividend, usually set two trading days before the record date.