22-43 The payoff on a catastrophe futures contract is adjusted for the actual loss ratio of the insurer.

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This is true. Catastrophe futures contracts are designed to protect insurers against large losses resulting from natural disasters or other catastrophic events. The payout on a catastrophe futures contract is typically linked to the actual loss ratio of the insurer, meaning that the amount paid out will be adjusted based on the severity of the event and the resulting losses experienced by the insurer. This helps to ensure that the insurer is adequately compensated for any losses incurred, while also protecting them against the financial impact of catastrophic events.

22-43 the Payoff on a Catastrophe Futures Contract Is Adjusted