Which of the following statements about judgment rating is true?
A)It involves the manual rating of exposures.
B)It is used when the loss exposures are so diverse that a class rate cannot be calculated.
C)It is a form of experience rating.
D)It is only used when credible loss statistics are available.

Question

Quizplus · Accepted Answer

Judgment rating is used when the loss exposures are so diverse that a class rate cannot be calculated, making option B the correct statement. Option A is incorrect because judgment rating is typically done through a computer program, rather than manual rating. Option C is incorrect because while judgment rating is a type of rating plan, it is not considered a form of experience rating. Option D is incorrect because credible loss statistics are not a requirement for using judgment rating.

Which of the Following Statements About Judgment Rating Is True