Multiple choice general knowledge

Manual Rating is rating method to derive the amount of its projected claim

  1. From the actual morbidity experience of all those groups it expected to have normal morbidity

  2. From morbidity experience of that group

  3. a& b

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Manual rating uses industry-wide morbidity tables representing expected normal claims experience rather than a specific group's actual history. This standardized approach allows pricing for groups without sufficient claims history. Experience rating would use that group's own data, but manual rating relies on pooled normal expectations.

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