Which of the following statements about schedule rating is (are) true?
I. It involves the determination of a basis rate for each exposure, which is then modified by credits or debits.
II. It is based on the assumption that certain physical characteristics of the insured's operations will influence the insured's future loss experience.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: C
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Which of the following statements refer to the currency criteria when evaluating secondary data?
A) Data should be reliable and generalizable to the problem at hand. B) Syndicated firms periodically update census data. C) The objective will determine the relevance of the data. Reconfigure the data to increase their usefulness, if possible. D) Assess accuracy by comparing data from different sources.
Quality at the source is a philosophy whereby defects are caught and corrected where they are created
Indicate whether the statement is true or false