Which of the following statements about experience rating is (are) tru

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

I. The insured’s past loss experience is used to determine the premium for the next policy period.
II. Its use is generally limited to small firms whose actual experience lacks credibility.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: A