(EXAMFX) Exam FX Insurance Practice Test
EXAMFX Insurance Premium Calculation and Rating
In insurance rating, what is the purpose of the 'loss ratio'?
Select your answer
A
To measure the ratio of premiums collected to agent commissions paid
B
To compare losses incurred to premiums earned, indicating underwriting profitability
C
To determine how much of the premium goes to administrative expenses
D
To calculate the insured's deductible as a percentage of coverage
Hint
