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LSDefine

Simple English definitions for legal terms

loss ratio

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A quick definition of loss ratio:

Loss ratio: The loss ratio is a measure used in insurance and banking to compare the amount of money paid in premiums or loan assets to the amount of money lost due to claims or loan defaults. It helps to determine the financial health of an insurance company or bank by showing how much money is being lost compared to how much is being earned. A lower loss ratio is generally better, as it means that the company or bank is managing its risks effectively and is less likely to experience financial difficulties.

A more thorough explanation:

Definition: Loss ratio is a term used in insurance and finance to describe the ratio between the amount of money paid in premiums or loan assets and the amount of money lost due to claims or loan defaults during a specific period of time.

Example 1: In insurance, if a company collects $1,000,000 in premiums and pays out $500,000 in claims during a year, the loss ratio would be 50% ($500,000/$1,000,000).

Example 2: In finance, if a bank has $10,000,000 in loan assets and experiences $100,000 in loan losses during a year, the loss ratio would be 1% ($100,000/$10,000,000).

These examples illustrate how loss ratio is used to measure the financial performance of insurance companies and banks. A high loss ratio indicates that a company is paying out more in claims or experiencing more loan losses than it is collecting in premiums or loan payments, which can be a sign of financial instability. A low loss ratio, on the other hand, indicates that a company is collecting more in premiums or loan payments than it is paying out in claims or losses, which can be a sign of financial strength.

loss payee | loss reserve

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JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
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@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
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i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
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then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
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