Under One Type of Rating Law,insurers Are Free to Change

question 49

Multiple Choice

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.

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Definitions:

Marginal Resource Cost

The increase in total cost that results from utilizing one additional unit of a resource in production.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or raw materials.

Labor Demand Data

Information that reflects the quantity of labor that employers are willing to hire at various wage rates.