Which of the following statements is true regarding insurance market conditions and underwriting results?
A) A combined ratio greater than one (or 100 percent) indicates profitable underwriting.
B) In a "soft" insurance market, more retention is used than in a "hard" insurance market.
C) Insurance rates are high and underwriting standards are tight when the insurance market is "hard."
D) Property and liability insurance premiums and underwriting standards do not fluctuate over time.
Answer: C
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