Premiums Based on Experience Ratings

question 19

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 United States
• E)Are only used in property-casualty insurance underwriting.

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Definitions:

Municipalities

Political subdivisions within a state that have their own government and typically encompass cities, towns, or villages.

Equity Courts

Specialized courts that decide cases based on fairness and equitable principles rather than strict application of laws.

Criminal Law

A body of law that deals with behavior that is considered harmful to society as a whole, defining offenses and setting penalties.

Civil Law

A legal system based on written codes or statutes, as opposed to common law, which is based on judicial decisions and precedent.