Exam DISC-RM Practice Question 209
Study guide: Exam DISC-RM
For its commercial property line last year, an insurer reports earned premium of $50 million, incurred losses and LAE of $33 million, and underwriting expenses of $15.5 million. Using earned premium as the base for both ratios, what are the line's underwriting profit and combined ratio?
- A) A loss of $1.5 million and a combined ratio of 103%
- B) A profit of $1.5 million and a combined ratio of 66%
- C) A profit of $1.5 million and a combined ratio of 97%
- D) A profit of $17.0 million and a combined ratio of 97%
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