All of the following statements about business objectives in designing

All of the following statements about business objectives in designing a rating system are true EXCEPT

A) The rating system should encourage loss control activities.
B) The rating system should be independent of long-run changes in economic conditions.
C) The rating system should be simple to understand.
D) The rating system should be stable over short periods so that consumer satisfaction can be maintained.

 

 

ANSWER

Answer: B

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