At P&C Insurers, If the Combined Ratio Is Less Than

question 44

Multiple Choice

At P&C insurers, if the combined ratio is less than 100%, the premiums charged were sufficient to cover

• A) losses only.
• B) expenses only.
• C) both losses and expenses.
• D) losses, expenses, and investment returns on premiums.

---

Definitions:

Opposable Thumbs

A characteristic of some primates, including humans, allowing the thumb to touch the tips of the other fingers, enabling grasping objects and tool use.

Chimpanzees

A species of great ape native to the forests and savannas of tropical Africa, known for its complex behaviors and social structures.

Nocturnal

Active at night and at rest during the day.

Arboreal

Relating to or resembling a tree or life in the trees; often used to describe animals that live in trees.