求教:section18 ,T9

fannyzhou

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 fol-
  lowing 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) The claims against at least some underpriced pol-
      icies do not require paying out all of the pre-
      mium income from those policies as soon as it
      is earned.
不理解意思,哪位可以帮忙解答一下？多谢

braveMBA

E?
The conclusion is "Therefore, an underpriced policy does not represent a net loss in
  every case. ". That means there are at least some profits, or no loss of the policy. But claims against it plus expenses associated with it exceed total income from premiums. So, The claims must against that at least some underpriced policies do not require paying out all of the premium income from those policies as soon as it is earned, as E means.

johnson_zhang

不理解意思,哪位可以帮忙解答一下？

我想你可能不理解POLICY （保险单），CLAIM （赔偿），PREMIUM（保险金）的意思以及其中的关系吧

fannyzhou

对，是不理解那几个词的意思，不过经你一解释就明白了，多谢