Allain Inc. manufactures two products, sweat suits and jeans. The company has estimated its overhead in the order-processing department to be…
August 19, 2020
accessing non renewable resources 4
August 19, 2020

The experience rating of benefit plans achieves the ultimate degree of premium equity among policy holders.

In your essay, please comment on the following:

  • Define experience rating
  • Why might this be a more fair way to rate benefit premiums?
  • Why is it not used every time benefit premiums are rated?
  • Are there any drawbacks to using experience rating and why?

 

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