Reference no: EM132403016
1. Referred to the Following information for this question:
Annual Data Thousands of Dollars
Premiums earned $25,000
Losses Incurred $17,000
Expenses/Commission $7,500
Dividends paid to policyholders $750
Investment income on premiums $1,600
Which of the Following is True?
The combined ratio after dividends is 105%. This indicates that premiums are sufficient to generate profitability.
The combined ratio after dividends is 105%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 101%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 101%. This indicates that premiums are not sufficient to generate profitability.
The combined ratio after dividends is 98%. This indicates that premiums are sufficient to generate profitability.
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