### Question
How is the "loss ratio" defined?


### Answer
The term **loss ratio** is defined in *7 U.S.C. § 1502* as follows -

> the ratio of all sums paid by the Corporation as indemnities under any eligible crop insurance policy to that portion of the premium designated for anticipated losses and a reasonable reserve, other than that portion of the premium designated for operating and administrative expenses

#### Citation:
  - *7 U.S.C. § 1502*
  - Heading: **CHAPTER 36-CROP INSURANCE > SUBCHAPTER I-FEDERAL CROP INSURANCE**

