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"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.

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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
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