An analyst in the financial department for an insurer has calculated the loss ratio to be 1.03. This result indicates that the insurer is

An analyst in the financial department for an insurer has calculated the loss ratio to be 1.03. This result indicates that the insurer is



A.Collecting approximately $1.03 in premium for every $1.00 it pays in claim-related expenses.
B.Collecting approximately $1.03 in premium for every $1.00 it pays in claim-related and underwriting expenses.
C.Paying out approximately $1.03 in claim-related and underwriting expenses for every $1.00 it collects in premium.
D.Paying out approximately $1.03 in claim-related expenses for every $1.00 it collects in premium.


Answer: D. Paying out approximately $1.03 in claim-related expenses for every $1.00 it collects in premium.

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