tutorial_Insurance_5_Student

tutorial_Insurance_5_Student - UNIVERSITY OF TECHNOLOGY,...

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SCHOOL OF BUSINESS ADMINISTRATION INSURANCE TUTORIAL QUESTIONS SUBJECT: UNIT 5 Financial Operations Of Insurance Companies GROUPS: BBA – Question 1 : a) What are the two major sources of revenue for a property and casualty insurance company? b) What are the major expenses of a property and casualty insurance company? Question 2: a) How is the combined ratio of an insurance company calculated, and what does the combined ratio measure? b) How is it possible for a property and casualty insurance company to be profitable if its combined ratio exceeds one or (100 percent)? Question 3: For the last calendar year, a property insurer reported the following financial information for a specific line of insurance: Premiums Written $ 25,000,000 Expenses Incurred 5,000,000 Incurred Losses & loss adjustment expenses 14,000,000 Earned Premiums 20,000,000 a) What is the insurer’s loss ratio for this line of coverage? b)
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This note was uploaded on 02/26/2012 for the course ECON 101 taught by Professor Adam during the Three '11 term at University of Technology, Sydney.

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tutorial_Insurance_5_Student - UNIVERSITY OF TECHNOLOGY,...

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