Which of the Following Statements Referring to the Loss Ratio

Multiple Choice

Which of the following statements referring to the loss ratio are true?

A) The loss ratio measures the actual losses incurred on a line of insurance business.
B) A common measure of the overall underwriting profitability of a line of insurance business is the loss ratio.
C) The loss ratio measures the pure losses incurred on a line of insurance business relative to premiums earned.
D) The loss ratio measures the predicted losses incurred on a line of insurance business relative to premiums earned.