The Expense Ratio Equals

question 47

Multiple Choice

The expense ratio equals:

• A) total underwriting expenses divided by insured losses
• B) net income divided by total expenses
• C) total expenses divided by net income
• D) total expenses divided by premiums written

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Definitions:

Ethanamine

An organic chemical compound, also known as ethylamine, with the formula CH3CH2NH2, classified as a primary amine.

Conjugate Base

The species that remains after an acid has donated a proton, often able to react by accepting a proton.

pKa Values

A quantitative measure that indicates the strength of an acid; it's the logarithmic constant of a compound's dissociation in water.

Acids

Substances that donate protons (H+) in a chemical reaction and have a pH less than 7 in an aqueous solution.