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The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.
Suggested Answer: A
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22 comments · newest first
NA
Nada
2 days ago
I feel A) True is correct. It's straightforward.
TR
Trinidad
7 days ago
I’m leaning towards B) False. Seems off.
SH
Sherman
12 days ago
I agree, A) True. Investment income matters.
PE
Pearly
18 days ago
I think it's A) True. Makes sense to me.
LA
Lashawnda
23 days ago
Sounds right, but I need to double-check that!
IL
Ilene
28 days ago
Operating ratio = combined ratio - investment income.
WI
Winifred
1 month ago
I thought it was the other way around.
QU
Queen
1 month ago
Wait, is that really how it works?
BR
Brynn
1 month ago
That's definitely true!
ST
Stanton
2 months ago
Sounds right, but I need to double-check that!
AN
Anissa
2 months ago
Operating ratio = combined ratio - investment income.
CA
Candra
2 months ago
I thought it was the other way around.
TU
Tuyet
2 months ago
Wait, is that really how it works?
JI
Jillian
2 months ago
That's definitely true!
FR
Frederica
2 months ago
I thought the operating ratio was supposed to include investment income, so I think this might be true.
FA
Fanny
3 months ago
I feel like the statement is false, but I can't quite remember the exact definition of the operating ratio.
WI
Willetta
3 months ago
I remember practicing a question that mentioned the operating ratio, but I can't recall if it was less than or more than something else.
KA
Kanisha
3 months ago
I think the operating ratio is related to the combined ratio, but I'm not sure about the investment income part.
IR
Ira
3 months ago
I’m pretty confident that the operating ratio is related to premiums, but I’m not certain about the investment income part. It seems like a tricky question!
RI
Rikki
3 months ago
I feel like the statement is misleading. The operating ratio usually focuses on expenses versus premiums, but I might be mixing it up with something else.
MO
Mona
4 months ago
I remember a practice question that mentioned the operating ratio, but I can't recall the exact formula. Was it supposed to include investment income or not?
PR
Precious
5 months ago
I think the operating ratio does involve investment income, but I'm not completely sure if it's calculated like this.