Premiums Based on Experience Ratings

question 9

Multiple Choice

Premiums based on experience ratings

• A) are uniform across age groups.
• B) are based on the loss experience of the insured.
• C) vary depending on the income of the insured.
• D) are illegal in most states in the U.S
• E) are only used in property-casualty insurance underwriting.

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Definitions:

Agent Expertise

The specific knowledge or skills an agent possesses that enables them to act effectively on behalf of others.

Potential Influence

The capacity or possibility to affect change or sway opinions within a given context or situation.

Referent Power

The influence a person has over others because they are admired, respected, or identified with, often stemming from personal characteristics or charisma.

Friendship

A close and bonded relationship between individuals where support, mutual respect, and emotional connection are present.