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an insurance line has a loss ratio of 68%, expense ratio of 34%, pays 2% of...

an insurance line has a loss ratio of 68%, expense ratio of 34%, pays 2% of premiums to policy holders as dividends and an investment yild of 6%. The operation ratio for this line is ? 94 102 104 110 none of the above

Solutions

Expert Solution

Operation Ratio = Loss Ratio + Expense Ratio + Premium paid - Investment Yield

= 68+34+2 - 6

= 98

Therefore, Option E is correct, ie NONE OF THE ABOVE

jeff jeffy answered 2 years ago
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