A manufacturing company just hired a new risk manager,and she has instituted several employee safety programs.She has persuaded the insurer writing the company's workers compensation insurance to base the premium on the company's actual loss experience during the current period rather than on the company's historical performance.This type of plan is called a(n)
A)retrospectively rated plan.
B)class rated plan.
C)experience rated plan.
D)judgment rated plan.

Question

Quizplus · Accepted Answer

A retrospectively rated plan adjusts the premium based on the actual loss experience during the policy period, rather than relying on historical data.

A Manufacturing Company Just Hired a New Risk Manager,and She