Which of the following is an example of Experience Rating?

a. Separating risks into category groupings or classes

b. Evaluating the individual risk to determine probability of loss, the extent of that possible loss, and the premium that would need to be charged to cover any possible claims

c. Taking the individual's past three years of risk history and comparing it to the average claim experience for similar risks

d. Modifying a manual rating by taking the individual's risk into account

Answer: C

Property Insurance Concepts

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