In a retrospective rating plan calculation, premiums are primarily adjusted over time based on changes in:

A. Incurred Losses

B. Taxes

C. Standard Premium

D. Loss Control Expenses

A firm that has financial risk, through investment and credit solutions, can use the capital markets to transfer the risk.

True

False

The maximum premium of a retrospective rating plan is designed to assure that the insurance carrier collects adequate premium to administer the insurance program should actual losses exceed expected losses.

True

False

A key advantage of a self insurance plan includes:

eliminating uncertainty of retained losses.

controlling retained losses and the payout schedule.

eliminating of all administrative costs and burdens.

none of the above applies.