Which of the Following Statements Is True About the Residual

question 11

Multiple Choice

Which of the following statements is true about the residual market?

• A)Premium rates for insureds in this market are higher than those of the voluntary market.
• B)Firms that qualify for insurance based on normal underwriting guidelines and premiums can buy insurance through this market.
• C)Operating losses in this market is lesser than operating losses in an assigned risk plan.
• D)Gains in this market can be 15 to 30 or more of premiums for employers insured in the voluntary market.
• E)Firms self-insure rather than opting for insurance in this market to retain profits obtained through self-insurance.

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