1.Insure Co. issues an insurance policy where the final premium is based on actual losses during the year. This is referred to as:

		experience rating
		judgement rating
		retrospective rating
		schedule rating

2.Which statement regarding statutory accounting principles (SAP) is correct?

		SAP is less conservative than GAAP (generally accepted accounting principles)
		Expenses must be recognized immediately (at the time the policy is issued)
		Underwriting expenses must increase liabilities
		Collected premiums can never be considered assets on the balance sheet