These Individuals Are Charged with Determining Appropriate Rates (Prices) for Insurance

question 50

Multiple Choice

These individuals are charged with determining appropriate rates (prices) for insurance coverage.They estimate the frequency and severity of losses and the loss distribution to determine rates for coverage.Identify them.

• A)Underwriters
• B)Assessors
• C)Reinsurers
• D)Demographers
• E)Actuaries

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Definitions:

Acid-test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets including cash, marketable securities, and receivables.

Income from Continuing Operations

This refers to the earnings generated from the normal business activities excluding one-time transactions, discontinued operations, and other irregular items.

Loss on Discontinuance

A financial loss that occurs as a result of the cessation of a business unit or operation.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales.