Which of the Following Statements About Lloyd's of London Is

question 43

Multiple Choice

Which of the following statements about Lloyd's of London is true?

• A)Coverage is actually written by syndicates who belong to Lloyd's of London.
• B)New individual members or Names who belong to the various syndicates have unlimited legal liability.
• C)It operates as an admitted insurer throughout the United States.
• D)It allows underwriters to write coverage without meeting stringent financial requirements.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of output, such as materials and labor.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the company's fixed versus variable costs.

Financial Break-Even

The point at which total revenues are equal to total operational and financial costs, indicating a project or company is not losing money but not making profit either.

Required Return

The minimum expected return an investor seeks on an investment, considering the risk associated with it.