Experience rating

Experience Rating
This rating system makes use of a group's premium and their claim experience to establish premium rates. Depending on the previous year's claim experience the insured party's premium will go up or down.

experience rating
insurance company technique to determine the correct price of a policy premium. The company analyzes past loss experience for others in the insured group to project future claims.

EXPERIENCE RATING - A technique insurance companies use to determine the correct price of a policy prem...
EXPERIENCED AUDITOR - An auditor that has a reasonable understanding of audit activities and has studie...

Experience Rating System. Insurance premiums in such a system are based on the insured's past experience.

See also Adequacy of Coverage; Annual Exclusion; Cash Value Insurance; Contingent Beneficiary; Convertibility; Death Benefit; Experience Rating; Financial Needs Approach; Fixed Premium; Fully Paid Policy; Guaranteed Insurability; Hidden Load; ...

Charged to an expense account, fully reducing reported profit of that year, as is appropriate for expenditures for items with useful lives under one year.
Experience rating ...

The refunds are determined by a formula set forth within the insurance contract and are generated when the premiums paid exceed the losses paid for a particular period of time. Experience rating may be either prospective, ...

experience rating A quantitative measure used by an insurance firm to determine how much a given... expiration Termination, end. expiration cycle The Expiration Cycle is a recurring cycle of months for which options for a...

See also: Expense, Administration, Life insurance policy, Compensation, Funding