Which of the following statements about schedule rating is (are) true?

I. It involves the determination of a basis rate for each exposure, which is then modified by credits or debits.
II. It is based on the assumption that certain physical characteristics of the insured's operations will influence the insured's future loss experience.
A) I only
B) II only
C) both I and II
D) neither I nor II


Answer: C

Business

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