rate

A unit of cost that is multiplied by an exposure base to determine an insurance premium. An insurance rate is the amount of money necessary to cover losses, expenses, and provide a profit to the insurer for a single unit of exposure. Rates, as contrasted with loss costs, include provision for the insurer's profit and expenses.


Links for IRMI Online Subscribers Only: CAI III.G; IWC XI.C; RF III.A

Home > Free Risk & Insurance Information > Glossary of Insurance & Risk Management Terms > Terms > R > rate