Question

What does the term "Underwriting-Year Basis" refer to in rating?

a.

The use of premiums written and losses incurred in a specific year

b.

The calculation of net risk based on underwriting guidelines

c.

The evaluation of policyholder applications for insurance

d.

The analysis of claims experience for a particular underwriting year

Posted under IC85 Reinsurance Management

Answer: (a).The use of premiums written and losses incurred in a specific year Explanation:The "Underwriting-Year Basis" involves using all premiums written from policies written or renewed during the year and all losses related to those same policies, regardless of when the losses occur. It refers to considering the financial data for rating purposes.

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