Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)Measuring and managing credit and interest rate risk are key concerns of general insurance managers.
• B)If pure losses, underwriting losses and other costs are higher and investment yields lower than expected, general insurers suffer a significant amount of deficit reserves.
• C)On average, underwriting cycles measured from peak to peak can last anywhere from 12 to 20 years.
• D)Measuring and managing credit and interest rate risk are key concerns of general insurance managers and if pure losses, underwriting losses and other costs are higher and investment yields lower than expected, general insurers suffer a significant amount of deficit reserves.

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Definitions:

LIFO

Last In, First Out (LIFO) is an inventory valuation method which assumes that the most recently produced items are the first to be sold.

Units

In accounting and finance, refers to a measure of quantity or volume of production or inventory.

Specific Identification

An inventory costing method in which costs are assigned to individual items or batches of items, not to inventory as a whole.

Cost of Goods Sold

This refers to the aggregate expense involved in creating a product that a company sells, including direct labor, material costs, and direct factory overhead.