📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    The process of determining the cost of an insurance

    policy based on the actual loss experience determined as an adjustment to the initial premium payment is termed as?
    A Universal Life Insurance Correct Answer Incorrect Answer
    B Unauthorized Reinsurance Correct Answer Incorrect Answer
    C Unearned Premium Correct Answer Incorrect Answer
    D Retrospective Rating Correct Answer Incorrect Answer
    E None of these 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.

    Practice Next
    More Insurance Awareness Questions
    ask-question