Your essay should be approximately 250 words on the following topic:

As the text suggests, experience rating of benefit plans achieves the ultimate degree of premium equity among policy holders.

In your essay, please comment on the following:

• Define experience rating
• Why might this be a more fair way to rate benefit premiums?
• Why is it not used every time benefit premiums are rated?
• Are there any drawbacks to using experience rating and why?

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