A criterion of insurance rate regulation that stipulates that an insurer’s premium rates must be adequate to cover the insurer’s cost of doing business, claims payments, and a reasonable profit to the insurer.
Insurance Encyclopedia
Adequate care
See: Due Care.
Adequate plant, machinery and equipment
At common law an employer must take reasonable care to provide adequate plant and machinery and see that it is properly maintained. This includes the provision of protective devices and clothing and, where appropriate, a warning or exhortation to use such equipment. The employer may also have to take account of any special disabilities of the workman (Paris v. Stepney B.C. (1951)). Under the Employers’ Liability (Defective Equipment) Act 1969 the employer is strictly liable for injury caused by a latent defect in a tool, even though the fault is that of the manufacturer. See PUWER.
Adequate rates
Charges that generate insurance premiums that are enough to cover incurred claims, operational costs, risk charges, and contingency reserve funds.