Author Question: A manufacturing company just hired a new risk manager, and she has instituted several employee ... (Read 51 times)

strangeaffliction · **on:** Jul 11, 2018

A manufacturing company just hired a new risk manager, and she has instituted several employee safety programs.

She has persuaded the insurer writing the company's workers compensation insurance to base the premium on the company's actual loss experience during the current coverage period rather than on the company's historical performance. This type of plan is called a(n)
A) retrospectively rated plan.
B) class rated plan.
C) experience rated plan.
D) judgment rated plan.

Question 2

Which of the following statements concerning regulatory objectives of rate making is (are) true? I. Rates must not be unfairly discriminatory. II. Rates must be adequate.

A) I only
B) II only
C) both I and II
D) neither I nor II