MEDICAL,USA: 1. To find out a future property or liability insurance rate. 2. Premium for a certain projected period of time based on the loss experience of a specific prior period of time. In such a contract, the carrier assumes the risk (inadequate or excessive) and the purchaser pays a fixed rate for the contract period. Other factors may be considered in adjusting the rates for renewal of insurance such as insurance industry trends or inflation.
***
A method used in arriving at the rate and premium for a specified future period, based in whole or in part on the loss experience of a prior specified period.
***
A way of calculating the rates or premiums for a particular period in the future. This method is based on the losses sustained during a particular period in the past.
***
REINSURANCE,REFERENCE: See: Rating