Which of the Following Statements About Retrospective Rating Is True

question 1

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

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Definitions:

Complementary Goods

Goods that are consumed together because the use of one product increases the use of another, such as smartphones and phone cases.

Vanilla Pudding

A creamy dessert made with vanilla flavoring, milk, sugar, and a thickening agent, often served cold.

Bananas

A type of edible fruit produced by various kinds of large herbaceous flowering plants in the genus Musa, often consumed as a staple food in many parts of the world.

Market Demand

The total level of a product or service that all individuals in a market are disposed and capable of acquiring at multiple price ranges.