Rate risks under alternative procedures: class plans, territories, deductibles, increased limits, coinsurance, and commercial lines mechanisms.

Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Ratemaking. 34 min read, ~5,041 words.

A class plan groups similar risks; premium equals base rate times relativity times exposures, and you compute indicated relativities by the pure premium, loss ratio, or adjusted pure premium method. Judge each rating variable against Finger's four categories of criteria: statistical, operational, social, and legal. Territories are geographic classes; pick...

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