3-92 What Does the Loss Ratio Measure in Any Particular

question 72

Multiple Choice

3-92 What does the loss ratio measure in any particular year?

• A)Payouts on policies to premiums earned.
• B)Amount of premiums earned relative to the payout on policies.
• C)Overall underwriting profitability of a line.
• D)Loss adjustment expenses to premiums earned.
• E)Commission and other acquisition costs to premiums written.

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Definitions:

Neutralizes

To make chemically neutral, cancelling out acidic or basic properties, or to render something ineffective or harmless.

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The decomposition or separation of molecules by the action of light.

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A toxic, reddish-brown gas (NO2) that is a significant air pollutant, resulting from the combustion of fossil fuels and is associated with respiratory diseases.