Which of the Following Statements Is Correct About the Loading

question 23

Multiple Choice

Which of the following statements is correct about the loading expenses for insurance companies?

• A) The loading expenses are measured using the expense ratio.
• B) The loading expenses are governed by law.
• C) The loading expenses reduce the insurance premiums charged by insurance companies.
• D) The loading expenses compensate the insurance companies for the risk that they take.

---

Definitions:

Bicarbonate Ions

Anion compounds (HCO3-) that act as a buffer to maintain the pH balance in blood and other fluids in the body.

Alkaline

Referring to a basic, as opposed to acidic, substance with a pH greater than 7, often characterized by the presence of hydroxide ions (OH-).

Albumin

Albumin is a protein found in blood plasma that helps in maintaining osmotic pressure and transporting substances throughout the body.

Sodium Chloride

A chemical compound, commonly known as salt, which is essential for life but also used extensively as a seasoning and preservative.