By requiring a minimum medical loss ratio, an insurance company provides greater value to its policyholders when a percentage of premiums is used for healthcare costs versus administrative expenses or profits.

Higher

Explanation:

Medical loss ratio is a percentage of premium dollars spent by a health plan on medical claims and quality improvements as against the percentage of the premium dollars spent on administrative cost. A higher percentage of the premium dollars must go to health care cost over administrative expenses or profits. Accordingly, profits or administrative expenses are expected not to make more than 20%, thus making insurance company provides more value in healthcare cost in 80% of the premiums. Rebates are remitted to insured if the administrative costs exceeds 20%.

15% or 20% on administrative expensive or profit

Explanation: medical loss ratio specify maximum percentage

Insurers can spend on administrative cost

a naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or share. unlike a normal warrant, it is not attached to a newly issued bond or preferred stock.

unsecured bonds: they are not secured by a specific asset, but rather by "the full faith and credit" of the issuer. in other words, the investor has the issuer's promise to repay but has no claim on specific collateral. debt, such as unsecured bond debt, is said to be “subordinated,” or junior, to secured debt.

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