Glossary
A rated insurer is an insurance company that has received a financial size and strength rating from a rating agency such as A.M. Best and Standard and Poor's.
Read MoreA rated policy is a life insurance policy that is issued at a premium rate higher than standard to cover an individual classified as a substandard risk.
Read MoreRate discrimination involves an insurer using different rates for exposures of the same risk type and classification.
Read MoreRate making refers to the process of using underwriting information to calculate a premium for the exposure.
Read MoreA rate manual contains classifications and rates for a given line of insurance.
Read MoreRate on line (ROL) is the calculation in percent derived by dividing reinsurance premium by reinsurance limit; the inverse is known as the payback or amortization period. For example, a $10 million catastrophe cover with a premium of $2 million would have an ROL of 20 percent and a payback period of 5 years.
Read MoreA rating bureau is an organization that collects statistical data (such as premiums, exposure units, and losses), computes advisory rating information, develops standard policy forms, and files information with regulators on behalf of insurance companies that purchase its services.
Read MoreThe rating class is the classification for rating purposes of an individual exposure.
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