Which of the Following Statements About the Combined Ratio Is

Multiple Choice

Which of the following statements about the combined ratio is true?

A) It is equal to the loss ratio minus the expense ratio.
B) A combined ratio greater than 1 (or 100 percent) means an underwriting loss has occurred.
C) The combined ratio considers the company's investment income.
D) A combined ratio less than 1 (or 100 percent) indicates an underwriting loss has occurred.