Author Question: Last year, XYZ Insurance Company had a combined ratio of 102.4 and lost 10.2 million on the ... (Read 98 times)

meagbuch

  • Hero Member
  • *****
  • Posts: 568
Last year, XYZ Insurance Company had a combined ratio of 102.4 and lost 10.2 million on the insurance that it sold.
 
  The company, however, was required to pay income taxes. The best explanation for this apparent contradiction is that XYZ offset its underwriting loss with
  A) increased loss reserves.
  B) investment income.
  C) increased loss adjustment expenses.
  D) unearned premiums.

Question 2

Which of the following statements regarding terrorism insurance is (are) true? I. There is a federal backstop if terrorism claims are catastrophic. II. Private insurers market terrorism insurance.
 
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II



Jmfn03

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

Answer: B

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Jmfn03

  • Sr. Member
  • ****
  • Posts: 323

 

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

For a complete list of videos, visit our video library