cpcu 540 assignment 5
Which one of the following ratios is a gauge of the insurer's retained insurance exposure after reinsurance transactions?
Net Premiums Written to Policyholders' Surplus ratio
A.M. Best's financial strength ratings may be accompanied by one or more modifiers, indicated by lowercase letters. The modifier r indicates which one of the following?
That the rating includes consideration of reinsurance
Which one of the following statements is true?
The insurer's liquidity position is satisfactory if the combined value of its high-grade marketable securities and cash exceeds its unearned premium reserve and loss reserve.
In evaluating underwriting profitability, the analyst usually compares losses and loss adjustment expense amounts to
The portion of written premiums that corresponds to the coverage that has already been provided.
Which one of the following statements is correct regarding A.M. Best's review of an insurer's balance sheet strength?
When reviewing a rating unit's balance sheet strength, A.M. Best is evaluating its ability to meet its financial obligations.
