Which of the following statements about methods for estimating loss reserves for property and casualty insurers is (are) true?
I. The judgment method involves the use of a statutory formula to estimate the loss reserve.
II. The average value method is used when the number of claims is large and the claims are settled quickly.
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
LMN Mutual Insurance Company has total liabilities of 300 million. The company has total assets of 380 million. What is LMN's policyholders' surplus?
A) 680 million
B) 340 million
C) 80 million
D) -80 million
