Reference no: EM13939453
Refer to the following information for this question:
Annual Data Thousands of Dollars
-Premiums earned $25,000
-Losses incurred $18,000
-Expenses/commissions $7,500
-Dividends paid to policyholders $ 750
-Investment income on premiums $ 1,600
Which of the following is true?
A) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $7,500
B) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $26,750
C) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $ 17,500
D) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $ 18,350
E) None of the above
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