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Certified Underwriter (CU) Exam
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Question Number 5
A commercial insurer's management is emphasizing the need to improve underwriting profitability. An underwriter's risk selection and pricing decisions directly impact which two primary components of the company's combined ratio?
Investment income and incurred losses.
Incurred losses and underwriting expenses.
Earned premium and investment income.
Earned premium and underwriting expenses.
✔ Correct Answer:
Incurred losses and underwriting expenses.
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