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NEW QUESTION: 2
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NEW QUESTION: 3
Under the alternative funding method used by the Trilogy Company, the insurer charges Trilogy an initial premium that is based on the assumption that claims will be 93% of the expected claims for the year. If claims exceed 93% of expected claims, then Trilogy must reimburse the insurer for any additional claims paid, up to 112% of expected claims. The insurer bears the responsibility for paying claims in excess of 112% of expected claims.
From the following answer choices, choose the name of the alternative funding method described.
A. Premium-delay arrangement
B. Minimum-premium plan
C. Retrospective-rating arrangement
D. Reserve-reduction arrangement
Answer: C


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