If Losses on a Particular Line of Fire Insurance Were

question 88

Multiple Choice

If losses on a particular line of fire insurance were $430 million, premiums earned were $595 million, and loss adjustment expenses were $95 million, the combined ratio would be

• A)0.88 implying that this line of insurance is profitable.
• B)0.88 implying that this line of insurance is unprofitable.
• C)1.13 implying that this line of insurance is profitable.
• D)1.13 implying that this line of insurance is unprofitable.
• E)0.22 implying that this line of insurance is profitablE.