The Two Major Components of Expense Risk for P&C Insurers

question 35

Multiple Choice

The two major components of expense risk for P&C insurers are

• A)the combined ratio and the premium ratio.
• B)loss adjustment expenses and variations in commission and other expenses.
• C)investment yield and premiums earned.
• D)dividend ratio and investment yield.
• E)none of these options are correct.

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Definitions:

Modernization

The process through which societies transform from traditional rural agrarian economies to secular, urban, and industrialized systems.

Sex Ratio

Indicates the proportion of males to females in a population.

Environmental Toxins

Substances found in the environment that can harm human health or the environment itself.

Toxic Sites

Locations contaminated with hazardous substances that pose a risk to human health and the environment.