Financial system that identifies insurance claims above a certain dollar amount and charges them to a pool that is funded by the charges of all groups who share the pool. This system is established to assist in stabilizing premium fluctuations.
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A system designed to help stabilize premium fluctuations in smaller groups. Large claims (those over a stated amount) are charged to a pool contributed to by many small groups who belong and share in that pool. The small the group of groups, the lower the poling level. Larger groups will have a larger pooling level.