If the Loss Ratio on a Line of Insurance Is

question 58

Multiple Choice

If the loss ratio on a line of insurance is 70 percent and loss adjustment expenses are 33 percent, then the line is profitable before dividends if the ratio of

• A)commissions and other expenses are 15 percent and investment yields are 10 percent.
• B)commissions and other expenses are 5 percent and investment yields are 6 percent.
• C)commissions and other expenses are 16 percent and investment yields are 20 percent
• D)commissions and other expenses are 15 percent and investment yields are 12 percent.
• E)commissions and other expenses are 6 percent and investment yields are 4 percent.

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Definitions:

Anorexia Nervosa

Anorexia nervosa is an eating disorder characterized by an obsession with food, body weight, and shape, leading to extreme weight loss.

Eating Disorder

A mental disorder characterized by abnormal or disturbed eating habits, such as anorexia or bulimia.

Maladaptive

Behaviors or actions that are counterproductive to one's own welfare or well-being.

Medical Model

A framework for understanding illnesses and disorders through biological causes that can be treated within the healthcare system.