Author Question: Which of the following statements about the combined ratio is true? A) It is equal to the loss ... (Read 45 times)

jon_i · **on:** Jul 11, 2018

Which of the following statements about the combined ratio is true?

A) It is equal to the loss ratio minus the expense ratio.
B) A combined ratio greater than 1 (or 100 percent) means an underwriting loss has occurred.
C) The combined ratio considers the company's investment income.
D) A combined ratio less than 1 (or 100 percent) indicates an underwriting loss has occurred.

Question 2

In schedule rating, each building is individually evaluated based on several rating factors.

One factor refers to the possibility that the building will be damaged or destroyed by a fire that starts at an adjacent property and spreads to the building. This rating factor is known as
A) occupancy.
B) protection.
C) maintenance.
D) exposure.