A fixed non-adjustable premium. Sometimes used in reinsurance in respect of a portfolio of business that remains relatively unchanged over time or where a minimum premium situation applies.
Insurance Encyclopedia
Flat rate
UK: 1. An all-round rate as distinct from differential rating. The term is sometimes incorrectly used to refer to a fixed premium. 2. A reinsurance premium applicable to the entire premium income derived from the cedant from the business ceded to the reinsurer as distinct from the rate applicable to excess limits.
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In reinsurance, a percentage rate applied to a ceding company’s premium writings for the classes of business reinsured to determine the reinsurance premiums to be paid the reinsurer.
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REINSURANCE: In Reinsurance, a percentage rate applied to a ceding company’s premium writings for the classes of business reinsured to determine the reinsurance premiums to be paid the reinsurer. (ii) A reinsurance premium rate based on the entire premium income received by the ceding company from business ceded to the reinsurer, as distinguished from a rate applicable only to the excess limits premium.
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MEDICAL,USA: Method of payment in which all providers that render the same medical service are paid at the same rate. Also called uniform rate .
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UK: scheme Defined benefit scheme where the ultimate pension benefit depends on how long the member has been in the scheme. The pension accrues at a flat rate for each year regardless of earnings.
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REINSURANCE,REFERENCE: See: Rating
Flat rate (Reinsurance)
The rate on a reinsurance premium. This rate is derived from the premium income the ceding insurer receives from policies ceded to the reinsurer.
Fleet
A group of vehicles, ships or aircraft that are insured together under one policy. Sometimes these are subject to different rating approaches from those that would apply to individual risks.
Fleet for Motor
Motor fleet Insurance concerns the terms and conditions on which Insurance is offered to the owner of a number of cars of commercial vehicles.
Fleet insurance
Policy on a number of vehicles operated by the same insured and rated on an experience basis, i.e. fleet rating. Usually five or more vehicles constitute a fleet. The fleet itself can comprise vehicles of different classes, e.g. private cars, goods-carrying vehicles, etc. Aircraft and ships can also be insured as fleets.
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(i) A Motor Insurance Policy covering a group of similar vehicles with premiums calculated on an experience basis. (ii) A Hull Insurance contract covering a group of vessels in a single Policy. A Reinsurer’s line will be based, usually on the top value Vessel and pro-rata on the other, or may be interested in vessels only above or below a certain category.
Fleet of Insurance Companies
Many Insurance Companies are affiliated with others under the same Management. These groups, which usually include Fire, Marine, Causality, and Surety Companies, are called fleets.
Fleet policy
Written for a risk that has five or more vehicles.
Fleet policy (Vehicle Insurance)
A contract for coverage on multiple vehicles, usually five or more.
Fleet Rating
The process of determining premium rates for fleets. Different techniques will be used for the individual risks in a fleet, largely based on the size of the fleet and the amount of claims history available. For example, while small fleets may be largely rated according to book rates per vehicle with some adjustment for expense savings, some form of experience rating will be used for larger fleets with the credibility increasing with the size of the fleet. In Marine Hull Insurance, fleet rating will aim to incorporate the characteristics of a fleet (for example ones under common management) into the rating process, as well as the risk characteristics of the individual ship. Advanced statistical rating techniques could be applied although simpler rating techniques are used in practice.