All of the Following Statements About Class Rating Are True

question 9

Multiple Choice

All of the following statements about class rating are true EXCEPT

• A)Exposures with similar characteristics are placed in the same underwriting class.
• B)The rate charged for each class reflects the average loss experience for that class.
• C)The complexity of class rating makes it inappropriate for personal lines coverages.
• D)It is based on the assumption that future losses to insureds will be determined by the same classification factors currently in use.

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Definitions:

Sweet Sixteen

A term traditionally referring to a coming-of-age party celebrating a teenager's 16th birthday, primarily in the United States.

Environment

The natural world, including land, water, air, plants, and animals, as well as the physical and biological conditions affecting human life and society.

Feedback

Information provided about the result of a process or activity, used as a basis for improvement or adjustment.

Significant Other

A significant other is a term used to describe a person who plays a major or central role in an individual's life, often a romantic partner but can also include a close friend or family member.