For P&C Insurers,if the Combined Ratio Is More Than 100

question 15

Multiple Choice

For P&C insurers,if the combined ratio is more than 100 percent,that firm

• A)could not have been profitable.
• B)must have been profitable.
• C)may have been profitable if investment returns were high enough.
• D)was profitable if the LAE was low enough.

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Definitions:

Suburbs of Tacoma

Areas surrounding Tacoma, Washington, typically residential, offering amenities and a lifestyle distinct from the urban center.

Summit of the Volcano

The highest point or peak on a volcano, which is often the location of the central vent or crater.

Mudflow Deposits

Sedimentary accumulations resulting from the flow of mud, often triggered by volcanic activity or heavy rainfall, that can cover large areas and solidify over time.

Landslide Blocks

Large pieces of earth, rock, or debris that move downhill rapidly due to gravity, often caused by saturation from rainfall or seismic activity.