The unit of measurement used in property and casualty insurance pricing is called the
A)expense loading.
B)premium.
C)exposure unit.
D)experience unit.

Question

Quizplus · Accepted Answer

The unit of measurement used in property and casualty insurance pricing is called the exposure unit. This is the unit used to measure the amount of risk being insured, such as a vehicle or a property. The premium is the amount the insured pays for the insurance policy, and the expense loading is the additional amount added to the premium to cover administrative costs and profit. The experience unit is not a commonly used term in insurance pricing.

The Unit of Measurement Used in Property and Casualty Insurance