A rate-making method designed to adjust a premium to reflect the actual loss experience of an insured in a given time period is known as
A) retrospective rating,
B) experience rating,
C) manual, or class, rating,
D) schedule rating,
E) preferred risk rating.

Question

Quizplus · Accepted Answer

Retrospective rating is a method where the final premium is adjusted based on the actual loss experience during the policy period, allowing for a more accurate reflection of the insured's risk.

A Rate-Making Method Designed to Adjust a Premium to Reflect