Which of the following statements about property and casualty insuranc

Which of the following statements about property and casualty insurance company operating results is (are) true?

I. An insurance company can have a combined ratio greater than 1 (or 100 percent) and still be required to pay income taxes.
II. By all measures, the property and casualty insurance industry is highly profitable when compared to other industries.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: A