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:

Formal Organizations

Secondary groups designed to achieve explicit objectives.

Secondary Groups

Social groups characterized by impersonal, formal, and instrumental relationships, often focused on a specific goal or task.

Explicit Objectives

Clearly defined goals or purposes that an organization or individual aims to achieve.

Networks

Sets of nodes (which can be individuals, organizations, computers, etc.) connected by relationships or communication paths, facilitating the exchange of information or resources.