3-74 If Losses on a Particular Line of Medical Malpractice

question 55

Multiple Choice

3-74 If losses on a particular line of medical malpractice insurance were $650 million and premiums earned were $575 million,the loss ratio would be

• A)1.13 implying that this line of insurance is profitable.
• B)1.13 implying that this line of insurance is unprofitable.
• C)0.88 implying that this line of insurance is profitable.
• D)0.88 implying that this line of insurance is unprofitable.
• E)-$75 million implying that this line of insurance is unprofitable.

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Definitions:

Heart Attack

A medical emergency where the blood flow to the heart is suddenly blocked, leading to damage of the heart muscle.

Stroke

A health issue wherein the flow of blood to a segment of the brain is either halted or diminished, causing the brain tissue to be deprived of oxygen and essential nutrients.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, often related to atherosclerosis or buildup of plaque in the arteries.

Ages

Various stages of human life characterized by specific developmental milestones, health care needs, and social roles.