Hole In One Coverage

An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net boon written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates profitability, while anything over 100 indicates Hole In One Coverage a loss.

• Insurance companies are generally classified as either mutual or stock companies

• This is another of a traditional distinction as true mutual companies are becoming rare
• Mutual companies are owned by the policyholders, while stockholders (who may or may not own policies) own stock guarantee companies
• Other possible forms for an major medical convention include reciprocals, in which policyholders 'reciprocate' in sharing risks, and Lloyds organizations.