Author Question: Under one type of rating law, insurers are free to change rates and to use modified rates ... (Read 51 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?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

For a complete list of videos, visit our video library