AINS 21 questions with answers 2024
Loss ratio - ANSWERS A ratio that measures losses and loss adjustment expenses against earned
premiums and that reflects the percentage of premiums being consumed by losses.
Expense ratio - ANSWERS An insurer's incurred underwriting expenses for a given perio...
Loss ratio - ANSWERS A ratio that measures losses and loss adjustment expenses against earned
premiums and that reflects the percentage of premiums being consumed by losses.
Expense ratio - ANSWERS An insurer's incurred underwriting expenses for a given period divided by
its written premiums for the same period.
Combined ratio - ANSWERS A profitability ratio that indicates whether an insurer has made an
underwriting loss or gain
Investment income ratio - ANSWERS Net investment income divided by earned premiums for a
given period.
Loss adjustment expense (LAE) - ANSWERS The expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy.
Paid Losses - ANSWERS Losses that have been paid to, or on behalf of, insureds during a given
period.
Incurred Losses - ANSWERS The losses that have occurred during a specific period, no matter when
claims resulting from the losses are paid.
Incurred but not reported (IBNR) losses - ANSWERS Losses that have occurred but have not yet been
reported to the insurer.
Dividends - ANSWERS The portion of an organization's profits that is paid to shareholders.
Assets - ANSWERS Types of property, both tangible and intangible, owned by an entity.
Admitted assets - ANSWERS Assets meeting minimum standards of liquidity that an insurer is
allowed to report on its balance sheet in accordance with statutory accounting principles.
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