Which of the Following Statements Is (Are)true About the Loss

Multiple Choice

Which of the following statements is (are) true about the loss ratio method of class rating?
I.A premium is calculated,and the pure premium is loaded to cover expenses,profit,and contingencies.
II.The actual loss ratio is compared to the expected loss ratio,and the rate is adjusted accordingly.

A) I only
B) II only
C) both I and II
D) neither I nor II