Warren is the president of The Huge Insurance Company. His Vice-President in charge of Finance comes to him one day and says "Warren, our combined ratio for the year is 105%." Warren replies, "Let's party!" Why isn't Warren upset about the high combined ratio?
A) The company probably made enough money on its investments to make up for the underwriting losses.
B) The company has actually made a 5% profit on its insurance business.
C) The combined ratio really isn't that important... it only measures the combined productivity of all regional offices the company owns.
D) The combined ratio is not an important indicator of underwriting results.
Correct Answer:
Verified
Q1: Which of the following is not a
Q22: If you were a life insurance underwriter,
Q23: Drinking a lot of alcohol before swimming
Q24: The combined ratio is:
A) the loss ratio
Q25: A burglar enters Marcia's home and steals
Q26: Bodacious D, a famous singer, is performing
Q28: A difference between a contract issued on
Q29: The expense ratio equals:
A) total underwriting expenses
Q30: From the insurance company's perspective, what is
Q32: If you were an underwriter of personal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents