Question: The reserve is apart of the?

Claims Charge or Retention Charge

Answer: Claims Charge

Question: The premium taxes is apart of the?

Claims Charge or Retention Charge

Answer: Retention Charge

Question: The credibility factor is apart of the?

Claims Charge or Retention Charge

Answer: Claims Charge

Question: The stop loss charge is apart of the?

Claims Charge or Retention Charge

Answer: Retention Charge

Question: Which Alternative Funding Method (AFM) allows the employer to defer payment of the premium for 60-90 days beyond the due date?

-Premium Delay Arrangement

-Cost Plus Arrangement

-Minimum Premium Plan

-Retrospective Rating Arrangement

Answer: Premium Delay Arrangement

Question: T/F: The use of a higher credibility factor in experience rating places more weight on incurred claims.

Answer: True

Question: T/F: If the dividends payable is negative, the employer must remit payment to the insurer within 30 days.

Answer: False

Question: T/F: With the manual rating process, the two characteristics used to adjust almost all coverages are gender and age.

Answer: True

Question: T/F: The risk charge represents the insurers’ contingency reserve which serves as a cushion against unanticipated and catastrophic losses.

Answer: True

Question: T/F: The use of experience rating bases rates on the characteristics of the group being insured.

Answer: False; because it is based on the group’s previous claims history