At P&C Insurers,if the Combined Ratio Is Less Than 100

question 56

Multiple Choice

At P&C insurers,if the combined ratio is less than 100 percent,the premiums charged were sufficient to cover

• A)losses only.
• B)expenses only.
• C)both losses and expenses.
• D)losses,expenses,and investment returns on premiums.

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Definitions:

Direct Investments

Investments made directly into real assets or businesses, rather than through a financial intermediary.

Multinational Corporations

Companies that operate in multiple countries beyond their original or home country, often engaging in production, sales, or other operations in various international locations.

Import/Export Businesses

Companies engaged in the trading of goods and services across international borders.

Encourage Exports

Policies or incentives designed to increase a country's goods sold abroad, aiming to improve economic balance.