If a specific account’s actual experience at the close of an insurance contract period results in excess funds, these can be applied toward the account’s rate for the next year, which helps offset the rate increase.
Tag: RAW
Rateable contribution
The basis upon which an insurer must contribute to loss when contribution applies. See INDEPENDENT LIABILITY METHOD.
Rateable Proportion
The sharing of losses between contributing Insurers in proportion to the sums insured.
Rated (Life Insurance)
A term used to refer to coverage that costs more because of the insured’s existing injury.
Rated insurer
An insurance company that has received a financial size and strength rating from a rating agency such as A.M. Best or Standard and Poor’s.
Rated Policy
An insurance policy issued at a higher than standard premium rate to cover the extra risk involved in certain instances where the insured does not meet the standard underwriting requirements; for example, impaired health or a particularly hazardous occupation.
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MEDICAL,USA: Insurance contract issued to an individual in a greater-than-average likelihood of loss classification such as impaired health or a hazardous occupation. This type of policy may have an exclusion clause and/or higher premium rate than a standard policy. Sometimes called an extra-risk policy .
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US: Sometimes called an “extra risk” policy, an insurance policy issued at a higher-than-standard premium rate to cover the extra risk where, for example, an insured has impaired health or a hazardous occupation.
Rated Up
Term applied to an insurance where the premium is higher than the norm.
Ratemaking
The statistical process by which insurers determine risks and pricing for the basic classes of insurance.
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The process of establishing premium rates used in insurance or other risk transfer mechanisms.
Ratification
Confirmation, as where a principal adopts as binding on him the act of another which was done on his behalf though without the principal’s previous authority.
Rating
1. Determining the value of risk of an individual or organization. 2. Establishing a year’s cost of a specific unit of insurance.
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Any procedure used to compute the premium rate which a particular insured or class of Insureds is charged for a given coverage.