Exam DISC-DA Practice Question 8
Study guide: Exam DISC-DA
A small insurer plans to start writing commercial auto in a state where it has never written the line, so it has no premium or loss history there. Which source best supports its initial loss costs by class and territory?
- A) Its own operational data from other states, treated as fully credible for the new state
- B) Advisory loss costs built from statistical plan data, limited to the fields the plan codes
- C) Rates set by the statistical agent, which the insurer must file unchanged
- D) A telematics vendor's driving scores, which make class and territory data unnecessary
Answer this question and see the worked solution