Under One Type of Merit Rating,the Class or Manual Rate

question 33

Multiple Choice

Under one type of merit rating,the class or manual rate is adjusted upward or downward based on past loss history.This type of merit rating is called

• A)schedule rating.
• B)judgment rating.
• C)experience rating.
• D)retrospective rating.

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Definitions:

Income and Loss Ratio

Usually referred to as the "loss ratio" in insurance, it is a metric that compares losses (claims paid and adjustment expenses) to premiums earned.

Capital Account

The capital account in accounting represents where all transactions involving the purchase and sale of capital assets are recorded, often reflecting the net worth of a business.

Liquidating

The process of converting assets into cash, often referring to the sale of assets during the winding down or closure of a business.

Noncash Assets

Assets that are not in the form of cash or easily convertible into cash, such as real estate, equipment, and patents.