One life insurance company reserve is designed to smooth the company's reported surplus over time by absorbing fluctuations in security prices that are not attributable to changing interest rates. This reserve is called the
A) asset write-off reserve.
B) reserve for amounts held on deposit.
C) unearned premium reserve.
D) asset valuation reserve.
Question 2
ABC Insurance Company's investment income ratio last year was 4.2 percent. The company's combined ratio last year was 102.6 percent. What was ABC's overall operating ratio?
A) 96.8 percent
B) 98.4 percent
C) 103.2 percent
D) 106.8 percent
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