During group underwriting, large groups have to be rated based on the insurer's experience with groups of similar type and size, while small groups can be rated on their own experience.

Question

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In group underwriting, large groups are often rated based on their own experience, while small groups are more likely to be rated based on the insurer's experience with groups of similar type and size, due to the lack of sufficient individual group data.

During Group Underwriting, Large Groups Have to Be Rated Based