Author Question: Under one type of rating law, insurers are free to change rates and to use modified rates ... (Read 53 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed.
 
  This type of rating law is called
  A) prior approval.
  B) file-and-use.
  C) use-and-file.
  D) flex rating.

Question 2

Mutual Property Insurance Company has a surplus of 2 million. According to a conservative rule, how much in new net premiums can Mutual Property Insurance Company safely write?
 
  A) 2 million
  B) 8 million
  C) 10 million
  D) 20 million



Sassygurl126

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

Answer: C

Answer to Question 2

Answer: A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

For a complete list of videos, visit our video library