XYZ Insurance Company Uses Class Rating to Determine the Rate

question 45

Multiple Choice

XYZ Insurance Company uses class rating to determine the rate to charge for insurance.For one type of insurance,the pure premium XYZ actuaries calculated is $75 per unit.If XYZ's expense ratio is 25 percent,what is the gross rate for this coverage?

• A)$37.50
• B)$55.25
• C)$75.00
• D)$100.00

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Definitions:

Palpable Masses

A physical condition in which lumps or formations can be felt under the skin when examined manually.

Anterior Skin

The front part of the skin, often referring to the skin located on the front part of the body.

Posterior Skin

The skin on the back or rear part of the body.

Acidosis

A medical condition in which the body fluids contain too much acid, often due to kidney failure or prolonged lack of oxygen.