Which of the Following Statements About Retrospective Rating Is True

question 26

Multiple Choice

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 future periods is determined by the average loss experience for the current and previous periods.
• D)The premium for future periods is determined by the loss experience for the current period.

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Definitions:

Pyranoses

Ring forms of six-membered sugar molecules that result from intramolecular hemiacetal formation, where the oxygen atom is part of the ring.

Furanoses

Ring forms of monosaccharides (sugars) that contain a five-membered ring typically including an oxygen atom.

Glucose

A basic form of sugar that serves as a crucial source of energy for living beings and a fundamental element of numerous carbohydrates.

Cyclic Hemiacetal

A cyclic organic compound formed from the reaction of an alcohol with an aldehyde or ketone, characterized by a carbon atom bonded to an oxygen (in hydroxy group), another oxygen (in ether group), a hydrogen, and an alkyl or aryl group.