QUESTION 4 Hugo Insurance Company is facing difficulties in its liability insurance line of business - it has incurred losses and loss adjustment expenses of $975,000 and earned premiums of $1,300,000...

Extracted text: QUESTION 4 Hugo Insurance Company is facing difficulties in its liability insurance line of business - it has incurred losses and loss adjustment expenses of $975,000 and earned premiums of $1,300,000 in the current year. As the expected loss ratio was 65%, what is the minimum level of rate adjustment that Hugo Insurance Company must introduce for its liability insurance business in the coming year? O a. 15.6% O b. 15.0% Oc. 15.4% O d. 15.2%