Question: Identify which ratemaking method, the pure premium method, loss ratio method, or judgment method is preferable in each of the following scenarios. Briefly explain each

  1. Identify which ratemaking method, the pure premium method, loss ratio method, or judgment method is preferable in each of the following scenarios. Briefly explain each answer.
  1. An insurer is revising the existing rate.
  2. An insurer is entering a new traditional line of business
  3. An insurer writes a commercial product with multiple exposure bases.
  4. An insurer is providing terrorism coverage.

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