Which of the following statements about retrospective rating is true?
A)The premium for the current period is determined by the loss experience in prior periods.
B)The premium for the current period is determined by the loss experience during the current period.
C)The premium for future periods is determined by the average loss experience for the current and previous periods.
D)The premium for future periods is determined by the loss experience for the current period.

Question

Quizplus · Accepted Answer

Retrospective rating adjusts the premium for the current period based on the actual loss experience during that same period, rather than relying on past or future periods.

Which of the Following Statements About Retrospective Rating Is True