"Credibility" with respect to experience-rated group insurance premiums means: Select one: a. The employer is well...

"Credibility" with respect to experience-rated group insurance premiums means: Select one: a. The employer is well known to the insurer. b. The employer has a minimum number of employees. c. The insurer has charged the lowest rates permitted by regulation. d. The insurer has observed the employer's loss data for a sufficiently long period to have confidence in the results.

Solutions

Expert Solution

Answer: Option d is correct.

"Credibility" with respect to experience-rated group insurance premiums means the insurer has observed the employer's loss data for a sufficiently long period to have confidence in the results.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

What problems would arise in setting experience-rated employment insurance premiums with regard to the following? a....

What problems would arise in setting experience-rated employment insurance premiums with regard to the following? a. Distinguishing between quits and layoffs. b. Setting rates for new businesses. c. Setting rates for small businesses with only a couple of employees. d. Firms declaring bankruptcy.

The premiums insurance companies charge to members of a group insurance plan are tied to the...

The premiums insurance companies charge to members of a group insurance plan are tied to the historical losses experienced by the members of the plan. Select one: a. true b. false

1. High insurance deductible usually means: A lower premiums B Higher premiums C No difference in...

1. High insurance deductible usually means: A lower premiums B Higher premiums C No difference in premium D you are willing to take on more risk 2. Worker's comp will still pay a claim if the worker was intoxicated at the time of the accident. A True B False 3. On a depreciating asset most likely the insurance premium would be higher for A A replacement cost policy B A value based policy C This make no difference D High...

How are the insurance premiums determined for deposit insurance? Use letters in alphabetical order to select...

How are the insurance premiums determined for deposit insurance? Use letters in alphabetical order to select options A The insurance premium is based on the bank’s level of riskiness and then adjusted according to the level of deposits of the overall U.S. banking system. B The insurance premium is based on the bank’s level of deposits and then adjusted according to the riskiness of the overall U.S. banking system's financial situation. C The insurance premium is based on the bank’s...

Joe has an annual income of $80,000. His employer pays all of his health insurance premiums....

Joe has an annual income of $80,000. His employer pays all of his health insurance premiums. Joe expects to incur $2,000 in unreimbursed medical expenses for the year. He pays an average federal tax rate of 22%. In addition, his state has a flat 3% income tax rate. Thus, his total income taxes paid will be equal to 25% of his taxable income. Joe expects to deduct $15,000 from his annual income for income tax purposes. a. How much income...

Joe has an annual income of $80,000. His employer pays all of his health insurance premiums....

Group Term Life Insurance Many employers limit providing employer-paid Group Term Life Insurance to $50,000. The...

Group Term Life Insurance Many employers limit providing employer-paid Group Term Life Insurance to $50,000. The IRS allows the $50k limit without assessing a tax on the value of this benefit. For a life insurance benefit in excess of $50k, the affected employee will have to include as income and pay income taxes. So some employers avoid the administrative chore of calculating the excess benefit and adding it to the employee’s annual W-2. A consequence to those employers may be...

Select an ethnic minority group that is represented in the United States with respect to African...

Select an ethnic minority group that is represented in the United States with respect to African American Population only. Using health information available from Healthy People, the CDC, and other relevant government using health information available from Healthy People, the CDC, and other relevant government websites, analyze the health status for this group. In a paper of 1,000-1,250 words, compare and contrast the health status of your selected minority group to the national average. Include the following: 1) Describe the...

Which of the following is correct? Select one: a. Overtime premiums should be treated as a...

Which of the following is correct? Select one: a. Overtime premiums should be treated as a component of Direct labour b. overtime premium should be accounted for as a special type of loss. c. Idle time should be treated as a component of manufacturing overhead. d. Both "a" and "c" are correct

Employees currently pay their own medical and health insurance premiums The company does not offer group...

Employees currently pay their own medical and health insurance premiums The company does not offer group life insurance The company would like to offer dependent care assistance under Sec. 129 for its employees What advice would you give the company President about starting a fringe benefit program for the employees? What are some of the tax benefits to the company and the employees? Would a cafeteria plan be an option for this company?

Subjects