This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements about the investments of property and liability insurers is (are) ... (Read 38 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juwms

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B





 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

The FDA recognizes 118 routes of administration.

For a complete list of videos, visit our video library