Which One of the Following Refers to a Category Based

question 10

Multiple Choice

Which one of the following refers to a category based on the driver's age,sex,marital status,and driving habits that is used to set automobile insurance premiums?

• A)Rating territory
• B)Assigned risk pool
• C)No-fault system
• D)Driver classification
• E)Rating tiers

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Definitions:

Units-of-production

A method of depreciation that assigns an asset's cost based on its usage, activities, or output, instead of the passage of time.

Depreciation Expense

Depreciation Expense denotes the allocation of an asset's cost over its useful life, reflecting the asset's consumption or decline in value.

Straight-line

A method of depreciation that allocates an equal expense amount to each period over the useful life of an asset.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life, evenly distributing the depreciation expense each year.