« previous next »

Author Question: Which of the following statements about retrospective rating is true? A) The premium for the ... (Read 86 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jul 11, 2018
Which of the following statements about retrospective rating is true?
 
  A) The premium for the current period is determined by the loss experience in prior periods.
  B) The premium for the current period is determined by the loss experience during the current period.
  C) The premium for the current period is determined by predicted future loss experience.
  D) The premium for future periods is determined by the loss experience for the current period.

Question 2

Ratemakers at ABC Insurance Company calculated the pure premium to be 280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratio?
 
  A) 364
  B) 400
  C) 430
  D) 520


Laurenleakan

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: B

Answer to Question 2

Answer: B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

True Friendship True Friendship
Adapoids and omomyoids had longer snouts and are the first “true” primates. Adapoids and omomyoids had longer snouts and are the first “true” primates.
Ratings of Perceived Contradictions in Political Statements Ratings of Perceived Contradictions in Political Statements
The posted octane rating in most high-altitude areas shows regular at 85 instead of the usual 87. The posted octane rating in most high-altitude areas shows regular at 85 instead of the usual 87.
How to convert verbal statements into algebraic equations (Part 2) How to convert verbal statements into algebraic equations (Part 2)
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Video: Studying the Left and Right Brain Independently

For a complete list of videos, visit our video library