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EFG Company experienced a reduced demand for its products during a recession. EFG managers were ...

EFG Company experienced a reduced demand for its products during a recession. EFG managers were considering laying off some workers when the personnel director said, "Let's not lay off these workers. If we do, our unemployment insurance premiums will increase. The state considers employment stability when determining our premium." Considering the firm's employment record when determining the rate to charge for unemployment insurance is called
A) experience rating.
B) class rating.
C) schedule rating.
D) retrospective rating.

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Principles of Risk Management and Insurance

Edition: 12^th

Authors: Rejda, McNamara

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