XYZ Insurance Company Uses Class Rating to Determine the Rate

question 45

Multiple Choice

XYZ Insurance Company uses class rating to determine the rate to charge for insurance.For one type of insurance,the pure premium XYZ actuaries calculated is $75 per unit.If XYZ's expense ratio is 25 percent,what is the gross rate for this coverage?

• A)$37.50
• B)$55.25
• C)$75.00
• D)$100.00