Final Answer:
Insurance charges and savings for retrospective rating are determined based on Table M.
Step-by-step explanation:
Insurance Charges and Savings: The statement indicates that both insurance charges and savings in the context of retrospective rating are considered. This implies that the financial aspects of insurance, including the amount charged and potential savings, are influenced by certain factors outlined in Table M.
Retrospective Rating: The term "retrospective rating" refers to a method in insurance where the final premium is not determined until the policy period ends. It involves adjusting the premium based on the actual loss experience during that period. In this case, Table M is used as a reference for the pricing of insurance charges and savings within the retrospective rating framework.
Table M: The mention of "Table M" suggests that there is a specific table or set of parameters labeled as M, which plays a crucial role in the calculation of insurance charges and savings. This table likely contains key factors or variables that influence the retrospective rating process.
Detailed Explanation for Each Part:
Insurance Charges and Savings: The inclusion of both terms emphasizes the financial implications of retrospective rating, considering both the costs (insurance charges) and potential financial benefits (savings).
Retrospective Rating: This method provides flexibility in adjusting premiums based on actual loss experience, promoting a more accurate reflection of risk and cost.
Table M: This table serves as a guide or reference, housing the relevant parameters that insurers use to determine insurance charges and savings in the retrospective rating process.