When the Employer Is Classified by Type, Which One of the Following

question 8

Multiple Choice

When the employer is classified by type, which one of the following methods is used to determine the premium rate?

• A) Schedule rating
• B) Experience rating
• C) Manual rating
• D) Retrospective rating

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Definitions:

Mortgage-backed CDOs

Complex structured finance products that pool together cash flow-generating assets and repackages this asset pool into tranches that can be sold to investors, specifically focusing on mortgage-backed securities.

Variable Rate Loans

Loans with interest rates that can fluctuate over time based on an underlying benchmark rate or index.

Tranches

Portions or slices of debt or securities that are structured to divide risk or return in a way that is marketable to different investors.

Credit Risk

Credit risk refers to the possibility that a borrower will default on a loan by failing to make the necessary payments.