请教大全－18－9

9.     Technically a given category of insurance policy is underpriced if, over time, claims against it plus expenses associated with it exceed total income from premiums. But premium income can be invested and will then yield returns of its own. Therefore, an underpriced policy does not represent a net loss in every case.

The argument above is based on which of the following assumptions?

(A) No insurance policies are deliberately underpriced in order to attract customers to the insurance company offering such policies.

(B) A policy that represents a net loss to the insurance company is not an underpriced policy in every case.

(C) There are policies for which the level of claims per year can be predicted with great accuracy before premiums are set.

(D) The income earned by investing premium income is the most important determinant of an insurance company’s profits.（E）

(E) The claims against at least some underpriced policies do not require paying out all of the premium income from those policies as soon as it is earned.

看不懂意思......

From my point of view, the passage is saying that:

1) An underpriced insurance policy occurs when "Claim + Expense > Premium"

2) But, if the company can  generate income from the investment of premuim, which is, if the "Premium + Yield > Claim + Expense", then there is no net lost in the case.

So, (E) needs to be assumed in order to agree with statement 2).

en ,i got it.

thanks.

俺还是不太明白，能否在讲讲？为什么e正确呢？？

明白了！

The argument said "Premium + Yield > Claim + Expense", so the insurance company will not have a net loss. Yield will only come when the premium can hold in hand for a while. And (E) said that the premium does not need to pay all out right away. So it is an assumption.

我想问问，有什么保险条款会要求保险公司一收到保费，就PAY OUT，PAY OUT给谁呢？

保险费要是拿到后马上就赔给被保险人就没时间做投资，更谈不上盈利了。这是我对e的理解。