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Question
An insurance company collected $31.0 million in premiums and disbursed $28 million in losses. Loss adjustment expenses amounted to $5.0 million. The firm is profitable
A. if dividends paid to policyholders is $4 million and income generated on investments is $4 million.
B. if dividends paid to policyholders is $10 million and income generated on investments is $14 million.
C. if dividends paid to policyholders is $6 million and income generated on investments is $2 million.
D. if dividends paid to policyholders is $10 million and income generated on investments is $4 million.
E. if dividends paid to policyholders is $4 million and income generated on investments is $2 million.
Answer
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