Which of the following statements referring to the loss ratio are true?
A) The loss ratio measures the actual losses incurred on a line of insurance business.
B) A common measure of the overall underwriting profitability of a line of insurance business is the loss ratio.
C) The loss ratio measures the pure losses incurred on a line of insurance business relative to premiums earned.
D) The loss ratio measures the predicted losses incurred on a line of insurance business relative to premiums earned.
Correct Answer:
Verified
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