If Losses on a Particular Line of Medical Malpractice Insurance

question 90

Multiple Choice

If losses on a particular line of medical malpractice insurance were $650 million and premiums earned were $575 million, the loss ratio would be

• A)1.13 implying that this line of insurance is profitable.
• B)1.13 implying that this line of insurance is unprofitable.
• C)0.88 implying that this line of insurance is profitable.
• D)0.88 implying that this line of insurance is unprofitable.
• E)-$75 million implying that this line of insurance is unprofitable.

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Definitions:

Local Extinction

The condition in which a species disappears from a particular area but continues to exist elsewhere in the wild or in captivity.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or affects a specific location and is not simply a direct result of physical injury.

Poaching

The illegal hunting, capturing, or collecting of wildlife, typically violating local or international conservation laws.