What Is a Potential Advantage of a Partial Experience Rating

question 22

Multiple Choice

What is a potential advantage of a partial experience rating over a full experience rating of insurance?

• A) Moral hazard costs are lower with partial experience rating.
• B) Adverse selection is less likely with partial experience rating.
• C) It helps insure firms against downturns.
• D) Partial experience rating is fairer to efficient firms.

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Definitions:

Excessive Blinking

A condition characterized by an abnormally high frequency of eyelid closure.

Thumb-Finger Grasp

A motor skill where the thumb and one or more fingers meet to hold an object, often seen in early child development.

Transfer Objects

In programming, it refers to simple objects used to transport data between layers and tiers of an application.

Apparent Malnutrition

A condition visibly indicated by insufficient intake or absorption of nutrients necessary for health.