IIA Exam IIA-CFSA Topic 7 Question 35 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 35
Topic #: 7

[All IIA-CFSA Questions]

The ''combined ratio'' of an insurance company is the ratio from combining which of the following?

1. The ''loss ratio.''

2. The ''other underwriting expense ratio.''

3. The ''expense ratio.''

4. The ''IBNR.''

AI and II only.

BI and II only.

CIII and IV only.

DI, II, III and IV.

Show Suggested Answer

Suggested Answer: C

by Brett at Jul 03, 2023, 05:04 PM

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Isabelle

2 days ago

I agree with Carmelina, the expense ratio and IBNR are not included in the combined ratio.

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Teri

6 days ago

If you included IBNR, you'd be double-counting expenses. The combined ratio is just the loss ratio and expense ratio. B all the way!

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Ruby

7 days ago

IBNR stands for 'Incurred But Not Reported,' which is a liability, not a ratio, so it doesn't belong in the combined ratio. B is the correct answer.

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Carmelina

8 days ago

I think the combined ratio includes the loss ratio and other underwriting expense ratio.

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Belen

10 days ago

The 'combined ratio' is the sum of the loss ratio and the expense ratio, so I'd go with B. I and II only.

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Chau

11 days ago

I'm not sure, but I think the combined ratio also includes the expense ratio and IBNR.

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Aja

13 days ago

I agree with Carlene, the combined ratio is calculated by combining the loss ratio and other underwriting expense ratio.

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Carlene

16 days ago

I think the combined ratio includes the loss ratio and other underwriting expense ratio.

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