The Concept of "Fairness" in Insurance Rate Making Is Best

Multiple Choice

The concept of "fairness" in insurance rate making is best described by which of the following?

A) The rate should reflect all individual differences that may affect future loss experience,
B) The rate should reflect the loss experience of the class into which an insured is placed,
C) The rate should be higher for those age groups having the most losses, and less for other age groups,
D) The rate should be high enough to cover all losses of the insurer,
E) The rate should be low enough for all insureds needing insurance to afford coverage.