AHM-520 Exam Dumps | In evaluating the claims experience during a given rating period of the Lucky Company, the Calaway Health

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AHIP.AHM-520.v2019-03-23.q129
Question 89

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Question 89/129

In evaluating the claims experience during a given rating period of the Lucky Company, the Calaway Health Plan determined that the claims incurred by Lucky were lower than Calaway anticipated when it established Lucky's premium rate for the rating period. Calaway, therefore, refunded a portion of Lucky's premium to reflect the better-than-anticipated claims experience.
This rating method is known as:

A. retrospective experience rating

B. blended rating

C. durational rating

D. prospective experience rating

Correct Answer: A

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