All of the Following Statements About Class Rating Are True

Multiple Choice

All of the following statements about class rating are true EXCEPT

A) Exposures with similar characteristics are placed in the same underwriting class.
B) The rate charged for each class reflects the average loss experience for that class.
C) The complexity of class rating makes it inappropriate for personal lines coverages.
D) It is based on the assumption that future losses to insureds will be determined by the same classification factors currently in use.