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

question 3

Multiple Choice

For P&C insurers, if the combined ratio is more than 100%, 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:

UML Class Diagram

A type of static structure diagram in the Unified Modeling Language (UML) that describes the structure of a system by showing the system's classes, their attributes, and the relationships between the classes.

Class Name

The identifier given to a class definition in Java or other object-oriented programming languages.

Class Diagrams

Visual representations of the structure of a program showing classes, their attributes, methods, and the relationships among classes.

Class Members

Constituents of a class in object-oriented programming that include both data fields (variables) and methods (functions) of the class.