Given earned premiums $100 million and incurred losses $70 million, what is the loss ratio?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Texas Property and Casualty Agent Exam with our comprehensive study resources, including flashcards and multiple choice questions with explanations. Gain the confidence needed to succeed!

Multiple Choice

Given earned premiums $100 million and incurred losses $70 million, what is the loss ratio?

Explanation:
Loss ratio equals incurred losses divided by earned premiums. With incurred losses of 70 million and earned premiums of 100 million, the calculation is 70 million ÷ 100 million = 0.70, which is 70%. So the loss ratio is 70%. This means 70% of the earned premium was used to cover losses, leaving the remaining portion to cover expenses and profit.

Loss ratio equals incurred losses divided by earned premiums. With incurred losses of 70 million and earned premiums of 100 million, the calculation is 70 million ÷ 100 million = 0.70, which is 70%. So the loss ratio is 70%. This means 70% of the earned premium was used to cover losses, leaving the remaining portion to cover expenses and profit.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy