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    Question

    A method of permitting the final premium for a risk to

    be adjusted, subject to an agreed-upon maximum and minimum limit based on actual loss experience is called?
    A Retention Correct Answer Incorrect Answer
    B Retrocession Correct Answer Incorrect Answer
    C Retrospective Rating Correct Answer Incorrect Answer
    D None of the Above Correct Answer Incorrect Answer
    E All of the Above Correct Answer Incorrect Answer

    Solution

    Retrospective rating is an insurance pricing method in which the premium is directly affected by losses that occur during the policy period. The insured pays a provisional premium based on projected losses. Retrospective rating is commonly used in workers compensation insurance.

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