« previous next »

Author Question: Which of the following statements about retrospective rating is true? A) The premium for the ... (Read 117 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?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

True Forget-Me-Not True Forget-Me-Not
A recruiting poster for the “True Sons of Freedom” encouraged African Americans to enlist. In fact, A recruiting poster for the “True Sons of Freedom” encouraged African Americans to enlist. In fact,
Which is TRUE about the alternation of generations cycle that is diagramed above? Which is TRUE about the alternation of generations cycle that is diagramed above?
This battery shows a large “1000” on the front panel but this is the CA rating and not the ... This battery shows a large “1000” on the front panel but this is the CA rating and not the ...
Examples of Mission Statements Examples of Mission Statements
How to convert verbal statements into algebraic equations (Part 3) How to convert verbal statements into algebraic equations (Part 3)
Video: Electrocardiogram Examination

For a complete list of videos, visit our video library