Separation of all prospective or presently insureds in group insurance plans by age, sex, location, income, status of dependency, and benefits for the purpose of computing premium rates.
Tag: RAW
Distribution bonds
See: INCOME BONDS.
Distribution channels
Various ways health plans and medical services are delivered such as insurance agents and brokers, pharmacies, pharmaceutical companies for drugs, and physicians.
Distribution expenses
Overhead costs in making insurance products available to the general public such as insurance agent compensation, group sales representatives’ salaries, postage, printing, and telecommunications for direct response marketing.
Distribution list
See: list service (listserv) .
Distribution network
the means by which a direct insurer markets its products to prospective policy holders (for example, agents, brokers, branches).
Distribution system
An insurance company’s network of organizations and individuals who perform all the marketing activities to convey an insurance product from an insurer to the consumers.
District of use
Factor in the rating of motor insurance premiums. The incidence of vehicle accidents varies directly with the density of the population in given districts. Private car insurers generally divide the country into six districts for this purpose while commercial vehicle insurers use three districts for goods-carrying vehicles.