3-81 An insurance company collected $31.0 million in premiums and disbursed $28 million in losses.Loss adjustment expenses amounted to $5.0 million.The firm is profitable
A) if dividends paid to policyholders is $4 million and income generated on investments is $4 million.
B) if dividends paid to policyholders is $10 million and income generated on investments is $14 million.
C) if dividends paid to policyholders is $6 million and income generated on investments is $2 million.
D) if dividends paid to policyholders is $10 million and income generated on investments is $4 million.
E) if dividends paid to policyholders is $4 million and income generated on investments is $2 million.
Correct Answer:
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