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Author Question: Which of the following statements about the investments of property and liability insurers is (are) ... (Read 57 times)

Sportsfan2111

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on: Jul 11, 2018
Which of the following statements about the investments of property and liability insurers is (are) true?
 
  I. Income from investments is important in offsetting any unfavorable underwriting experience.
  II. Because premium income is continually being received, the investment objective of liquidity is of little importance.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance. Delta has a retention limit of 200,000, and nine lines of insurance are ceded to Eversafe.
 
  How much will Eversafe pay if a 1,600,000 building insured by Delta suffers an 800,000 loss?
  A) 600,000
  B) 700,000
  C) 720,000
  D) 800,000


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juwms

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Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B


Sportsfan2111

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Reply #2 on: Jul 11, 2018
Correct answers!


juwms

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Reply #3 on: Jul 11, 2018
Great! Please up vote :D


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