Multiple Choice
When the number of exposure units in an insured group is larger, the degree of credibility of resulting loss experience will be
A) increased,
B) decreased,
C) changed only slightly,
D) credibility is unaffected by the number of exposure units.
Correct Answer:

Verified
Correct Answer:
Verified
Q56: Match the descriptions with their terms:<br>-The function
Q57: Experience rating looks to the past lost
Q58: A rate-making method designed to adjust a
Q59: Interest earned by insurers on premiums collected
Q60: Credibility in rate making is used to
Q61: Successful underwriting occurs when an insurer has
Q63: Match the descriptions with their terms:<br>-A type
Q64: The main objective of underwriting is to
Q65: Facultative reinsurance is the most complex form
Q66: The amount charged per unit of exposure