Exam DISC-DA Practice Question 232
Study guide: Exam DISC-DA
In an auto insurer's experience, drivers with high credit-based insurance scores have a loss ratio relativity of 0.80 and drivers with low scores a relativity of 1.25, relative to rates that do not use credit. The state then bans the use of credit, so every driver pays the same relativity of 1.00. Relative to the rate their own expected losses indicate, how much do high-score drivers pay under the ban?
- A) 0.80 times
- B) 1.00 times
- C) 1.25 times
- D) 1.56 times
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