Question

When an insurer relies on the prior claims history of the group to be insured in determining the rate to be charged, it is called:______

Answer 1

experience rating

Step-by-step explanation:

When an insurer relies on the prior claims history of the group to be insured in determining the rate to be charged, it is called experience rating. Like mentioned in the question this refers to the amount of loss that the insured party would receive in comparison to other similar cases. Which is why prior claims history is investigated when determining the amount.