Exam 8 Practice Question 8
Study guide: Exam 8
A manufacturer's workers compensation policy is experience rated, and its experience modification for the coming year is 1.25. Which statement best describes what the modification says about this risk?
- A) Its expected losses next year are 25% above those of the average risk in its class
- B) Its actual losses over the experience period were 25% above the losses expected for it
- C) Its past losses exceeded expected, and the debit recovers those losses over the coming year
- D) It is a bad risk that the insurer should non-renew if the debit continues
- E) Its class rate is 25% inadequate and should be raised for every risk in the class
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