Module 11 Flashcards
1
Q
Contract provision
limiting changes to
premium rates
A
Rate guarantee
2
Q
Rates to support projected claims charges and expenses based on experience analysis of the group’s most current experience
A
renewal rates
3
Q
A renewal process that beings with measuring current premium levels against projected claims charges
A
experience analysis
4
Q
A type of contract that allows for annual review and also has provisions permitting both the plan sponsor and insurer to cancel coverage
A
renewable term contract
5
Q
A contract provision related to plan sponsor size that allows an insurer to cancel a contract
A
minumum group size
6
Q
Plan member demographic information required by an insurer from the plan sponsor
A
renewal data
7
Q
One way that
demographics impact
a group’s manual
rates
A
claiming patterns
8
Q
For fully pooled plans,
which claims
experience during the
past year is used?
A
claims experience of total pool
9
Q
For groups underwritten on any basis other than fully pooled, which claims experience during the past year is used?
A
claims experience of the group
10
Q
The ratio of paid
claims to billed
premiums for any
given period
A
cash loss ratio or paid claims loss ratio
11
Q
A position resulting
when the incurred loss
ratio equals the target
loss ratio
A
breakeven position
12
Q
The result of dividing the incurred claims charge loss ratio by one minus the projected retention charge
A
experience adjusment
13
Q
A premium rate that is a combination of the required experience rate and the required manual rate, as determined by the group’s credibility factor
A
blended premium rate
14
Q
For a refundaccounted group, the financial position of the plan at the end of the contract period
A
premium surplus or deficit during accounting period
15
Q
Paid premiums –
claims charges –
retention + interest =
A
year end balance
