GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Percentage of each premium rupee that goes to insurers’ expenses including overhead, marketing, and commissions is called____
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Expense Ratio
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Expected Loss Ratio
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Extended Coverage
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Extra Expense Insurance
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Explanation:
Detailed explanation-1: -The loss ratio formula is insurance claims paid plus adjustment expenses divided by total earned premiums. For example, if a company pays $80 in claims for every $160 in collected premiums, the loss ratio would be 50%.
Detailed explanation-2: -The loss ratio and combined ratio are used to measure the profitability of an insurance company.
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