A Credit-Based Score That Insurers Claim Is Highly Predictive of Future

question 2

Multiple Choice

A credit-based score that insurers claim is highly predictive of future claims costs is an individual's

• A)combined ratio.
• B)loss ratio.
• C)insurance score.
• D)underwriting score.

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Definitions:

Non-U.S. Stocks

Shares of companies that are based outside of the United States, often included in investment portfolios for geographical diversification.

S&P 500

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Local Currency Returns

The return on an investment denominated in the currency of the country where the security is issued, ignoring the effects of foreign exchange fluctuations.

Correlation

A statistical measure showing how two securities move in relation to each other.