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Author Question: Which of the following statements about retrospective rating is true? A) The premium for the ... (Read 118 times)

SO00

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  • 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

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  • Posts: 309
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: B

Answer to Question 2

Answer: B


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