Calculate the following: a. If the loss ratio on a line of property insurance is 73 percent,
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a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 12.5 percent, and the ratio of commissions and other acquisitions expenses is 18 percent, is this line profitable?
b. How does your answer to part (a) change if investment yields of 8 percent are added?
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a No because the combined r...View the full answer
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Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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